BTS and BEM Drop over 4% as Investors Weigh on the Impact of Closures during Protest
BTS and BEM Drop over 4% as Investors Weigh on the Impact of Closures during Political Protest.
The share price of BTS dropped ฿0.40/share or 4.28% to ฿8.95/share, while the share price of BEM fell ฿0.40/share or 4.71% to ฿8.10/share at the closing of the morning session on Monday, October 19, 2020, after the operation of both Mass Rapid Transit system in Bangkok received a temporary stop due to the protest during the weekend.
KTB Securities (Thailand) (KTBST) stated that the political gathering since last week caused a temporary stop to the operation of the Mass Rapid Transit system in Bangkok under the enforcement of the emergency decree.
The analyst viewed that the incident could become a negative sentiment to the share prices of BTS Group Holdings Public Company Limited (BTS) and Bangkok Expressway and Metro Public Company Limited (BEM). However, the impact from a temporary stop is still limited as the closure only occurred at some stations and only a period of time during the weekend that has less traffic.
However, the prolonged protest and a disperse could affect earnings of BTS and BEM as KTBST expected a decline of 0.5% and 0.6%, respectively, to the earnings for every full day closure.
