The share price of Charoen Pokphand Foods Public Company Limited (SET: CPF), GFPT Public Company Limited (SET: GFPT) and Bangkok Ranch Public Company Limited (SET: BR) edged slightly higher on Tuesday after Saudi Arabia allowed poultry imports from 11 establishments of Thailand in which GFPT and BR has one of their establishments on the list, while CPF has six in total.
As of 10:45 local time in Thailand, CPF rose THB0.60 or 2.51% to THB24.50 per share. GFPT gained THB0.20 or 1.56% to THB13 per share, and BR jumped THB0.12 or 4.14% to THB3.02 per share.
KGI Securities stated that the announcement by Riyadh is a positive factor to Thailand in the long term, but expects limited impact in the short term, following the statement by CPF saying that this will open the opportunity for Thai exporters, but Brazil still remains advantageous in the competition for lower feed costs.
Meanwhile, GFPT stated that the company might not receive significant impact from this announcement due to Saudi Arabia mainly imports raw chicken, while the company focuses on exporting processed chicken. However, the company might receive indirect impact as higher exports may lead to higher demand domestically, resulting in a rise in prices.
