TASCO gains despite lackluster market on Monday

Leading road construction firm Tipco Asphalt shares rose around 6 per cent during mid-day trading on Monday bucking a downward trend for the rest of the market.

During mid-day trading, Tipco Asphalt or TASCO saw its shares surging 6.37 per cent to 21.70 baht per share, with a transaction value of 1.86 billion baht, the highest uptick in Monday’s trading session.

The Stock Exchange of Thailand (SET) index dropped 11.04 points or 0.73 per cent to 1,508.0 on Monday with total trading value at 38.61 billion baht.

According to Krungsri Securities, the index is expected to drop 1,500 – 1,510 points due to a lack of positive catalysts.

An analyst at Nomura Securities estimated that Tipco Asphalt will report dividend yield from the third quarter period of 1.4 per cent at 0.30 baht per share. Earlier, the company announced its increase in shareholding in Thai Slurry Seal, a construction company, to 62.50 per cent from 25 per cent, which would cost around 373 million baht.

Nomura’s research team viewed this development as neutral and warned investors of the possible speculative sell-offs after the price has increased.

“For medium- to long-term prospects, it will depend on the availability of alternative crude oil after the closures in Venezuela. There is enough oil for refining asphalt until June,’ said the Nomura team.

Tipco Asphalt’s profit in the fourth quarter of 2020 is expected to weaken from a record high in the previous quarter due to the average price of asphalt lowering from the seasonal high in the third quarter (around US$298 per ton in the fourth quarter).”

The research team predicts a 1.2 billion baht profit, down 35 per cent quarter-on-quarter but up 87 per cent year-on-year.

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