BTS shares fall nearly 4% as new Bangkok governor campaign sparks concern on concession contract

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Shares in BTS Group Holdings Plc (BTS), the parent firm of the Bangkok Mass Transit System, fell nearly 4 per cent on Monday amid concerns that the new city’s governor may not renew the concession beyond 2029.

Following Chatchart Sittipunt’s victory, BTS stock tumbled to 8.65 baht during the morning session, down by 3.9 per cent from its prior closing. The price then settled at 8.70 baht by midday.

Chatchart is one of the candidates who promises not to renew the concession contract with BTS when the current one expires in 2029. He also advocates for keeping the ticket price at 20-25 baht per trip to help people save transportation costs.

“This could hurt sentiment towards BTS in the near future,” said Krungsri analyst Phatipak Navawatana, adding that “the promises could turn into reality.”

However, Krungsri still maintains their target price on BTS at 12.60 baht as the expiry of the concession is yet to come. 

Apart from the mass transit business, BTS Group also engages in media, property and services sectors. The company’s latest quarterly earnings report showed a 38 per cent drop from a year earlier to 1.05 billion baht. 

Despite such concerns that dragged BTS shares down, Phatipak noted that “the share price correction could be a buying opportunity.” 

“The question now is how long this overhang will pressure the share price,” he added.

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