CRC Shares Rise 8% as Tourism Recovery Continues, Political Concerns Ease

Central Retail Corp. (SET: CRC) shares jumped by 8% on Friday as investors flocked back following an easing of on-going political tensions and the sustained strong recovery momentum in the tourism industry.

As of 11.46 A.M. Bangkok time, the share price of Central Retail Corporation Pcl. (CRC) rose THB3.00/share, or 8.22%, to THB39.50/share, with a trading value of THB563 million.  

After plunging sharply and breaking the 1,500-threshold level on Thursday, the Thai market calmed and returned to green territory in early Friday trading as the Pheu Thai Party agreed that the coalition-leading Move Forward Party would take the House Speaker position under the condition that if MFP leader Pita Limjaroenrat is unable to secure enough votes in the parliament to become the new prime minister, Pheu Thai will take charge of the formation of the coalition government. 

According to Krungsri Capital Securities, CRC shares rose sharply in early Friday trading as investors’ optimism was bolstered by the political conditions, which became clearer after the Pheu Thai Party walked away from House speakership and pledged to work with Move Forward to form the next government. 

The brokerage firm also anticipates a variety of new government schemes to support rising electricity prices, and other spending, which will likely offset any negative effects from raising the minimum wage to THB450 per day.

Krungsri maintains a “BUY” call on CRC shares with a target price of THB50.0.