Steel Stocks Rally on Speculation of Positive 2Q Earnings Outlook, TSTH Leads Gain
STEEL Index increased 2.32 points, or 4.99%, to 48.82 points as of 11:14 local time in Thailand, on speculation of expected positive earnings in 2Q21.
The Steel and Metal Products Index (STEEL) increased 2.32 points, or 4.99%, to 48.82 points as of 11:14 local time in Thailand, with a trading value of 1,052 million baht, on speculation of expected positive earnings in 2Q21 following Tata Steel (Thailand) (TSTH) reported solid first-quarter 2022 operating results.
CSP Steel Center (CSP) led gain of 13.00%, or an increase of ฿0.26/share to ฿2.26/share, with a trading value of 8 million baht.
Followed by Tycoons Worldwide Group (Thailand) (TYCN). The share rose 0.44/share or 12.94% to ฿3.84/share, with a trading value of 5 million baht.
Tata Steel (Thailand) (TSTH) rose ฿0.16/share or 9.30% to ฿1.88/share, with a trading value of 692 million baht.
Samchai Steel Industries (SAM) rose ฿0.10/share or 8.26% to ฿1.31/share, with a trading value of 24 million baht.
DBS Vickers (Thailand) Securities (DBSVS) stated that TSTH’s reported earnings growth by leaps and bounds may fuel speculation in steel stocks.
Meanwhile, Aira Securities (AIRA) forecasts that speculation will flow into stocks that earnings are expected to return to exceptional growth, such as the steel group. TSTH has reported a net profit of 847 million baht for the first quarter of 2021-22 (end of June), up two fold and sixteen fold from 406 million baht (4Q20-21) and 54 million baht, respectively (1Q20-21).