Stocks in the agribusiness sector such as CPF, GFPT, TU and TFG showed a fall on Friday’s trade as Russia’s invasion of Ukraine had impacts on feed markets.
The share price of Charoen Pokphand Foods Plc. (SET: CPF) dropped THB0.40/share or 1.61% to THB24.40/share.
The share price of GFPT Plc. (SET: GFPT) dropped THB0.20/share or 1.49% to THB13.20/share.
The share price of Thai Union Group Plc. (SET: TU) dropped THB0.20/share or 1.01% to THB19.70/share.
The share price of Thaifoods Group Plc. (SET: TFG) dropped THB0.08/share or 1.87% to THB4.20/share.
CGS-CIMB Securities (Thailand) stated that the escalating tensions between Russia and Ukraine are having an effect on agribusiness, particularly CPF, GFPT, and TFG, as Russia and Ukraine are the world’s largest sunflower producers that export more than 50% of sunflower oil and meal. Therefore , this has a direct effect on the price of poultry feed.
Meanwhile, Maybank Securities (Thailand) (MST) stated that food producer stocks have been harmed by the deteriorating situation in Russia and Ukraine as they produce the majority of the world’s wheat, barley, and maize. However, it is viewed as a temporary effect, with traders advised to wait and observe the situation and that are suggested to investing in domestic plays such as retail firms and tourism companies.
