As the largest stock by market capitalization on the Thai stock exchange, DELTA’s price swings can signal market volatility, prompting KGI Securities to conduct an analysis on the stock.
The KGI strategy update provides a preliminary analysis regarding the impact of the market capitalization of DELTA on the SET50 Index. As of February 4, DELTA’s market capitalization was approximately 1.534 trillion baht, which represented around 13% of the SET50 Index.
To align DELTA’s market cap to exactly 10% of the SET50, a reduction of 26% to THB 1.141 trillion baht would be necessary, assuming the market caps of other stocks remain stable. If this reduction were to occur, the potential impact on the SET50 Index, prior to the introduction of any capped weight adjustments, might be around 3%.
However, KGI emphasizes that this does not necessarily mean DELTA’s share price must fall by 26%, as various factors such as investor portfolio adjustments, the benchmarks used by different investors, and the specific features of mutual funds could influence the real impact during capped weight events.
