The share price of stocks in the Construction Services Sector traded lower on Monday after the lockdown restriction in Bangkok and surrounding provinces as well as construction campsites to contain the new cluster.
At the closing of the morning session in the Thai stock market, the share price of STEC dropped ฿0.10/share or 0.72% to ฿13.80/share with a trading value of 135 million baht.
CK plunged ฿0.40/share or 2.05% to ฿19.10/share with a trading value of 200 million baht.
ITD fell ฿0.06/share or 2.46% to ฿2.38/share with a trading value of 247 million baht.
NWR slipped ฿0.04/share or 3.54% to ฿1.09/share with a trading value of 76 million baht.
On Saturday, the Royal Gazette published a statement indicating a lockdown restriction in Bangkok and five surrounding provinces, including Nonthaburi, Pathum Thani, Samut Praka, Samut Sakhon and Nakhon Pathom.
The restriction, which will be implemented for 30 days starting Monday, will allow restaurants to be only available for takeaway, while community malls and department stores will close at 9 p.m.
Activities involving a gathering of more than 20 people will be banned for the time being. Construction camp sites in the six areas will be shut down, and workers will not be allowed to move elsewhere for one month to contain the new cluster that occurred in the campsite.
Moreover, there will also be checkpoints in four provinces of southern Thailand, including Narathiwat, Pattani, Songkhla and Yala.
DBS Vickers Securities (DBSVS) stated that the order on the construction campsite will have an impact on stocks related to contractors and construction, causing the work to delay, which would result in a drop of profit around 5-10% due to the missing revenue from construction and margin, while the cost is still fixed.
Still, DBSVS maintained “Overweight” rating on the Construction Services sector, choosing CK as top pick (target price at Bt24.00), seeing that the restriction is temporary and the overall performance would still have a high recovery rate, coupled with the tendency to acquire MRT Purple Line project in the future.