Thai Electronic Shares Rise after China’s Jan Factory Activity Returns to Growth

Thailand’s electronic company shares gained on Thursday as China’s industry activity increased in January for the first time in four months, after Beijing scrapped a years-long zero-COVID policy that had hampered output and supply chains.

As of 10.20 A.M. (Thai time), the share price of Delta Electronics (Thailand) Pcl. (SET:DELTA) rose THB44.00/share, or 4.90%, to THB942.00/share.

The share price of Hana Microelectronics Pcl. (SET:HANA) rose THB3.00/share, or 4.96%, to THB63.50/share.

The share price of KCE Electonics Pcl. (SET:KCE) rose THB1.00/share, or 1.80%, to THB56.50/share.

The analysts at Asia Plus Securities predicted that the electric sector will post outstanding earnings in 4Q22, leading them to suggest a “BUY” on KCE with a THB60.00 price target.

According to AIRA Securities, the increase in retail and electronics stock prices could be attributed in part to China’s PMI figures returning to growth in January.

In a survey released on Tuesday, China’s National Bureau of Statistics reported that the official manufacturing purchasing managers’ index (PMI) came in at 50.1 in January, breaking a string of contractions and increasing from 47.0 in December, the sharpest decrease since early 2020.

The 50-point mark distinguishes contraction from expansion.

The positive data came as the International Monetary Fund raised its growth prediction for China’s economy to 5.2% this year from 4.4% previously.