On Monday at 10:52 AM (Bangkok time), the share price of Sri Trang Agro-Industry Public Company Limited (SET: STA) dropped by 6.84% or THB 1.60 to THB 21.80, with a trading value of THB 378.84 million.
The share price of Thai Eastern Group Holdings Public Company Limited (SET: TEGH) lost 7.69% or THB 0.30 to THB 3.60, with a trading value of THB 24.91 million.
The share price of Thai Rubber Latex Group Public Company Limited (SET: TRUBB) slumped by 4.55% or THB 0.06 to THB 1.26, with a trading value of THB 3.86 million.
Yuanta Securities (Thailand) stated that Thai rubber stocks have been impacted by the US urging the EU to postpone the enforcement of the European Union Deforestation Regulation (EUDR). This delay has led to postponed EUDR rubber orders, affecting the anticipated revenue growth following the initial announcement of the regulation.
While uncertainties persist regarding whether the EU will heed the US request, the overall outlook for the rubber industry in 2024 remains positive.
The analyst anticipates STA’s performance to improve in the second quarter of 2024 and view the current situation as an opportunity to accumulate the stock, setting a target price of THB 33.70 per share. However, if the matter regarding the EUDR is excluded from consideration, the target price would be adjusted to THB 25.00 per share.
