Share prices of energy, retail, construction firms feel the pinch after Move Forward victory

Analysts believe Move Forward's economic policies to act against those enjoying near-monopoly could be the reason.

The Nation

The Nation



May 19, 2023

BANGKOK – The analysts explained that Move Forward has clear economic policies to act against those enjoying near-monopoly, as well as liberalise businesses with focus on supporting small entrepreneurs or startups. The analysts said the policies worried shareholders of large conglomerates so their prices started to fall after the election result.

Nuttachart Mekmasin, assistant managing director and research analyst of Trinity Securities Co Ltd, said the election victory appeared to have impacted three groups of listed companies with state concessions:

Energy companies: These companies include private power plants, petroleum and gas producers and retailers. Nuttachart said all firms in the group are expected to be hit by the policies of the next government.

Companies that win construction contacts or procurement contracts from state agencies: These companies include those with telecom concessions and electric railway concessions.

Large retailers: Nuttachartt said Move Forward has a policy to support small firms so profits of large corporations may drop.

Kijpon Praipaisalkit, the assistant managing director of UOBKayHian Securities (Thailand) Plc, said Gulf Electric Plc, which owns concession power plants and the merger deal of True Corporation and Dtac might be also affected.

Kijpon said he based his assessment on parliament debates by Move Forward leader Pita Limjaroenrat when he was an opposition MP.

Kijpon said contracts of power plants that have been signed might not be affected but the same companies might find it harder to win new projects.

The market sentiment on listed telecom firms might be volatile for a brief period because these firms are under market mechanisms that involve the firms’ performance, he added.

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