Thai Sweet Stocks Rise as Domestic Sugar Price Hiked

Share price of sweet stocks in the Thai stock market edged higher as domestic sugar prices are expected to increase.

As of 10:39 BKK time on Thursday, Khon Kaen Sugar Industry Public Company Limited (KSL) rose THB0.14 or 5.07% to THB2.90 per share. Buriram Sugar Public Company Limited (SET: BRR) gained THB0.10 or 1.87% to THB5.45 per share. Khonburi Sugar Public Company Limited (SET: KBS) increased THB0.10 or 1.69% to THB6.00 per share. Meanwhile, Kaset Thai International Sugar Corporation Public Company Limited (SET: KTIS) fell THB0.02 or 0.53% to THB3.78 per share.

The hike in prices is a positive sentiment to sugar stocks in the SET Index even though 90% of production in Thailand goes to exports, while the remaining 10% is for domestic sales. Price for granulated sugar will increase by 4 baht per kilogram to 24 baht. Meanwhile, the price for refined sugar will increase to 25 baht per kilo.

The rise in sugar price will have an opposite effect to beverage stocks such as Osotspa, Ichitan Group, TACC, CBG and SAPPE.