Shares of STARK Corporation (STARK), an electrical wire and cable manufacturer, plummeted almost 18 per cent on Monday after hitting all-time high, with analysts saying the rise to its target price might prompt stock sell-offs.
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. The stock accounted for the largest transaction value of 2.9 billion baht.
“STARK’s share price rose constantly and reached an all-time high at 5.45 baht last last week,” said an analyst “This could cause investors to sell and lower the price”
However, in terms of the company’s fundamentals, he said it is still unclear to identify 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.