On July 4, 2019, SET Index faced a huge selloff in the afternoon session, led to a plummet of 14.14 points at the closing or 0.81% to 1,724.37 points with a trading value of THB 88,848 million. The biggest mover yesterday was the energy sector while the group of stock that caused a sudden landslide was power generation stocks.
During today’s trading session, there were rumors in the trading room of the amendment of Power Development Plan 2018 (PDP 2018) to allow the electricity production of 51% from the government. The involvement from the government would lower the opportunity of power plant operators to bid and invest in future projects. As a result, shares in the power generator sector faced a huge selloff from panicked investors. However, the rumors earlier had been proved to be just rumors after a source familiar to the matter stated that the PDP 2018 had already been approved by the cabinet.
Upon checking the closing share prices on July 4th, it appeared that stocks in the power generation sector still has an upside for future investment.