Thailand’s electronic company shares gained on Thursday as China’s industry activity increased in January for the first time in four months, after Beijing scrapped a years-long zero-COVID policy that had hampered output and supply chains.
As of 10.20 A.M. (Thai time), the share price of Delta Electronics (Thailand) Pcl. (SET:DELTA) rose THB44.00/share, or 4.90%, to THB942.00/share.
The share price of Hana Microelectronics Pcl. (SET:HANA) rose THB3.00/share, or 4.96%, to THB63.50/share.
The share price of KCE Electonics Pcl. (SET:KCE) rose THB1.00/share, or 1.80%, to THB56.50/share.
The analysts at Asia Plus Securities predicted that the electric sector will post outstanding earnings in 4Q22, leading them to suggest a “BUY” on KCE with a THB60.00 price target.
According to AIRA Securities, the increase in retail and electronics stock prices could be attributed in part to China’s PMI figures returning to growth in January.
In a survey released on Tuesday, China’s National Bureau of Statistics reported that the official manufacturing purchasing managers’ index (PMI) came in at 50.1 in January, breaking a string of contractions and increasing from 47.0 in December, the sharpest decrease since early 2020.
The 50-point mark distinguishes contraction from expansion.
The positive data came as the International Monetary Fund raised its growth prediction for China’s economy to 5.2% this year from 4.4% previously.
