On Thursday at 10:57 AM (Bangkok time), the share price of Bangkok Commercial Asset Management Public Company Limited (SET: BAM) slumped by 2.86% or THB 0.25 to THB 8.50, with a trading value of THB 93.51 million.
Yuanta Securities (Thailand) indicated that BAM continued its decline from Wednesday, with investor apprehension growing over the company’s third-quarter 2024 earnings announcement. The company is anticipated to reveal a reduction in Non-Performing Asset (NPA) sales, amid indications of heightened strictness among commercial banks in extending loans for home purchases, especially for properties valued above THB 3 million, a category where a significant portion of BAM’s assets are positioned.
Initially, traders had anticipated a stronger performance from BAM in the third quarter of 2024 compared to the second quarter, given the company’s historical trend of displaying improved performance in the latter part of the year. Nevertheless, the heightened strictness among commercial banks in loan approval adversely impacted BAM’s NPA sales, resulting in a pessimistic sentiment surrounding the company.
Yuanta Securities (Thailand) recommends investors to await the release of BAM’s third-quarter 2024 earnings report before considering stock accumulation, noting that the company typically performs better in the fourth quarter than in the third. The analyst issues a ‘Trading’ recommendation for BAM, setting a target price of THB 9.70 per share.
