Delta Electronics (Thailand) Public Company Limited (DELTA) continued to edge higher amid delayed new free float measures from the Stock Exchange of Thailand.
As of 14:51 local time in Thailand on May 10, 2021, DELTA rose ฿40.00/share or 9.95% to ฿442.00/share with a trading value of 2,784 million baht.
The share price rose 40% since the announcement regarding the delay was made.
Analysts stated that the delay in implementing new free float measures will affect the banking sector that was speculated to gain the most benefit from this measure, and there could be speculation for securities that still benefited from the previous free float measure such as DELTA.
In March, the Stock Exchange of Thailand (SET) has opened for a hearing on the adjustment method for calculating the SET Index during the period of 2H21 from the Market Capitalization method, to Free Float Adjusted Market Capitalization, allowing the index to have a better reflection on the on-going situation in the market and in line with the global standard.
Moreover, the SET is expected to adjust the free float for the calculation of SET50, SET100 , SETCLMV, SETHD, SETTHSI and SETWB on the semi-annual rebalancing in June and December. Meanwhile, the free float used to calculate the index is expected to be adjusted to 1%.
Asia Wealth Securities (AWS) stated that the adjustment will affect large-cap stocks with low free float as the groups expected to suffer the most are the energy and transportation sectors. These include stocks such as DELTA, AOT, OR PTTEP, GPSC, AWC, GULF, BJC and SCGP, while benefiting groups will be banking, hospital and retail which are BBL, SCC KBANK, BCMS, CPALL, INTUCH, TISCO and CPN.