Srisawad Capital 1969 Public Company Limited (SET: SCAP) witnessed a continued decline in its share price for the fifth consecutive day following reports yesterday of alleged violations of the agricultural land reform code by Mr. Wichit Phayuhanaveechai, the Chief Executive Officer of SCAP.
The downward trend in the stock price, which had been ongoing for three days prior to this development, deepened with SCAP’s stocks plunging by over 4% on Friday and by approximately 10% over the course of the week.
Mr. Wichit Phayuhanaveechai, holding a significant ownership stake of 5.76% in SCAP, ranks as the second major shareholder after Srisawad Corporation Public Company Limited (SET: SAWAD) which retains a majority stake of 72.05%. SCAP has clarified that the actions of its CEO are deemed as a private matter necessitating standard legal procedures.
In an analysis, Bualuang Securities indicated that the news surrounding alleged misconduct by SCAP’s CEO has generated a short-term negative impact on investor sentiment towards both SCAP and SAWAD.
However, the brokerage firm expressed belief that the influence on SAWAD, as a principal shareholder, is likely to be limited. Additionally, Bualuang Securities foresees an enhancement in the earnings trajectory of SAWAD commencing from the second quarter of 2024 onwards.
