Shares of STARK Corporation (STARK), an electrical wire and cable manufacturer, plummeted almost 18 per cent on Monday after hitting a near 52-week high last week.
Analysts had said on Monday morning that the stock’s rise to its target price might prompt a stock sell-off.
STARK plunged by 17.74 per cent to 4.36 baht, before settling at 4.62 baht, still down 12.83 per cent by midday trading. It was the most traded stock on Monday with a transaction value of some 2.9 billion baht.
“STARK’s share price rose constantly and reached a near 52-week high of 5.45 baht last week,” said an analyst at UOB Kay Hian Securities. “This could cause investors to sell and lower the price.”
However, in terms of the company’s fundamentals, he said it is still unclear what prompted the price decline.
Bualuang Securities gave a target price for STARK at 5.40 baht, while Thanachart set the target at 5 baht.
The company did not immediately reply to a request for comment.