Whenever the equity price goes up to levels that are too high, listed companies usually announce a par split in order to spur attractiveness to investors. The par split or stock split always injects positive sentiment to the price even amid market fluctuation, including boosts demand for stock and drives up price.
For example, Sri Trang Gloves (Thailand) Public Company Limited (STGT)’s stock has jumped over the IPO since the kick off day, thanks to high demand for rubber gloves globally, and the share price has already aligned with its fundamentals. However when rumor has it that STGT’s par split is under consideration, the share price since the first trading day on July 2, 2020 (IPO of ฿34) until now has surged 152%.
Analysts even upgrades a target price of STGT to as high as ฿145.00/share.
Delta Electronics (Thailand) Public Company Limited (DELTA)’s share price as well increased 545% from ฿30/share 8 months ago to ฿163.50/share. DELTA has outstanding fundamentals as the company’s key production is auto-parts for electric vehicles (EV) and now the European EV market has improved continuously.
Therefore, DELTA’s FY2020 profit was expected to record as high as 6,300 million baht, an increase of 115%.
The share price on Oct 8, 2020 was closed at ฿195.50/share, rose 9.22% with a trading value of 1,932 million baht, then slipped 1.02% to trade at ฿193.50/share on Oct 9, with a trading value of 774 million baht.