DTAC Loses ฿5.9bn of Market Cap Over CEO’s Resignation/No 5G, Triggering Market Selloff
DTAC closed at 48.75 baht, dropped 2.50 baht with a trading value of 1.6 billion baht, lost 5,919 million baht of its market capitalization.
The share price of Total Access Communication Public Company Limited (DTAC) today closed at 48.75 baht/share, dropped 2.50 baht/share or 4.88% with a trading value of 1.6 billion baht. The share price has hit the lowest point at 46.00 baht/share, plunged 5.25 baht/share or 11.4% at the opening in the morning of January 17, 2020. Compare to yesterday, DTAC has lost 5,919 million baht of its market capitalization.
DTAC’s share price has plunged following the announcement of resignation of Mrs. Alexandra Reich as the Chief Executive Office yesterday.
A source close to the matter claimed that the resignation was rumored to be the disagreement of Telenor Group, a major shareholder of DTAC, over Mrs. Reich who insisted on participating in the bidding for 5G concession next month.
DBS Vickers Securities (Thailand) ltd (DBSV) pointed that the resignation of Mrs. Reich reflected negative sentiment on DTAC in a short period as a concern of an investors. The investors worry that if DTAC will not participate the 5G bidding, there is a high risk in losing its customer and market share. DBSVTH suggested HOLD DTAC with a target price of 65 baht.
