Thailand’s top chicken exporters’ shares surged on Wednesday, buoyed by a new wave of bird flu outbreak in Japan, which is likely to lead to increased export volume and chicken prices.
As of 11.12 AM (Thai time), the share price of GFPT Pcl. (SET:GFPT) rose THB0.20/share, or 1.47%, to THB13.80/share, with a trading value of THB229 million.
The share price of Charoen Pokphand Foods Pcl. (SET:CPF) rose THB0.20/share, or 0.83%, to THB24.20/share, with a trading value of THB129 million.
The share price of Betagro Pcl. (SET:BTG) rose THB0.25/share, or 0.78%, to THB32.50/share, with a trading value of THB128 million.
The share price of Thaifoods Group Pcl. (SET:TFG) rose THB0.15/share, or 2.86%, to THB5.40/share, with a trading value of THB67 million.
According to a Japanese media outlet, the country has killed nearly 10 million birds at poultry farms this season, a record high, as cases of avian influenza spread across the nation.
The Ministry of Agriculture, Forestry, and Fisheries stated that the previous record cull was 9.87 million, executed between November 2020 and March 2021.
The newest outbreak of bird flu in Japan is suspected to have been triggered by migratory birds.
Maybank Securities (THAILAND) (MST) said that a fresh wave of Japanese bird flu outbreak which has resulted in a sharp drop in supply in the short term will be positive for the export volume to Japan and is expected to be a factor supporting domestic chicken prices that are likely to increase. Therefore, this is positive for GFPT (TP:THB18.3), which has a high share of chicken exports to Japan.