ASIAN Reaches All-Time High, Gaining 6% as Baht Keeps Weakening

ASIAN rose ฿1.30/share or 6.28% to ฿22.00/share, with a trading value of 637 million baht after Thai currency opened today at a 33-month low of 33.28 baht to the US dollar.

The share price of Asian Sea Corporation Public Company Limited (ASIAN) rose ฿1.30/share or 6.28% to ฿22.00/share as of 11:29 local time in Thailand, with a trading value of 637 million baht.

According to the Bank of Ayudhya, Thai currency opened today (August 6) at a 33-month low of 33.28 baht to the US dollar, down from yesterday’s reading of 33.22 baht. The baht continues to depreciate following last night’s surge in US bond yields, meaning that the dollar is expected to strengthen in the medium and long run. Additionally, the Thai market is being severely impacted by the ongoing Covid-19 outbreak, with infection cases continuing to set new records.

The analysts from Bank of Ayudhya expect the baht to move in the range of 33.20-33.25 baht to the US dollar. Issue to monitor today is the US’s data of non-agriculture employment in July.

Country Group Securities (CGS) maintains a “BUY” recommendation on ASIAN with a target price of 20 baht, anticipating that the company’s 2Q21 net profit would retain its pace due to increased demand for frozen foods and animal foods.

Meanwhile, Capital Nomura Securities (CNS) has compiled a list of equities that are expected to benefit from the weakening baht, including TU, CPF, ASIAN, NER, XO, SAPPE, SVI, HANA, KCE, AMATA, and EPG.

Back to top button