Delta Electronics cites external factors in share price fluctuations
There’s been a recent development with Delta Electronics (Thailand). The company has informed the Stock Exchange of Thailand (SET) that the company’s recent share price fluctuations are the result of external factors and that its financial fundamentals remain strong. Following a slump of 18.3% on Tuesday, Delta’s shares experienced volatility yesterday, closing up 0.26%. The trading alert on Delta’s shares will remain effective until July 10.
In a recent SET filing, company president and director Jackie Chang explained that the fluctuations in Delta’s stock price are due to “various market conditions and external factors beyond our control.” He added, “Consequently, we are unable to provide comments on this matter. However, we want to assure our shareholders and the public that the company’s long-term business strategy remains unaffected by the stock market fluctuations.”
Chang emphasised that Delta Electronics’ current free float is at 22.3%, well above the SET’s minimum requirement of 15%. He also cited the strong year-on-year revenue and profitability growth in the first quarter of this year as evidence of the company’s robust financial fundamentals.
The director said Delta Electronics is dedicated to growing sustainably for the benefit of all stakeholders and adhering to market regulations. Chang explained, “We prioritise domestic and international investments, capacity expansion, operational efficiency, cost optimisation, and enhanced R&D capabilities.”
Asia Plus Securities (ASPS) observed that the SET index is likely to experience a further decline due to concerns about Delta’s share price volatility. “Delta Electronics normally accounts for 4.1% of the bourse’s trading value. When Delta was put on the trading alert list from April 3 to 21, it made up only 1% of trading value,” the brokerage noted.
ASPS also said that from the start of the year through June 19, Delta’s shares rose by 41%, contributing 43.8 points to the SET index. The index itself has declined by 6.7% year-to-date. Without Delta’s gains, that decline would have been 9.3%, reported Bangkok Post.
At the close of trading yesterday, Delta Electronics shares were valued at 96.25 baht, with a trade worth of 1.58 billion baht.
