On Wednesday at 11:22 AM (Bangkok time), the share price of Gulf Development Public Company Limited (SET: GULF) rose by 1.81% or THB 0.75 to THB 42.25, with a trading value of THB 593.38 million.
Global Power Synergy Public Company Limited (SET: GPSC) gained 2.13% or THB 0.75 to THB 36.00, with a trading value of THB 217.74 million.
B.Grimm Power Public Company Limited (SET: BGRIM) expanded by 3.42% or THB 0.50 to THB 15.10, with a trading value of THB 116.45 million.
Asia Plus Securities notes that Thai power plant stocks stand to benefit from the anticipated downward trend in Thailand’s policy interest rate. The market is closely watching the Monetary Policy Committee meeting scheduled for this afternoon, where expectations are for a 0.25% rate cut, bringing the policy rate down to 1.25%.
Additionally, as investors engage in sector rotation, fund flows are moving out of the technology sector and into defensive stocks, among which power plant shares are included. These stocks are currently considered laggards in terms of price performance, positioning them to gain from both the rate cut and sector rotation trends.
Furthermore, the analyst points out that the significant decline in oil prices is viewed as a positive factor that will help reduce operating costs for power plant operators.
