Thailand’s Big 3 Telecom Stocks Trade Higher as Speculation on TRUE-DTAC Merger Returns

Thailand’s big three telecom stocks traded higher on Thursday as investor sentiment was boosted by speculation about a merger between TRUE and DTAC.

As of 15.14 hrs. local time in Thailand, the share price of Advanced Info Service Public Company Limited (SET: ADVANC) rose THB9.00/share or 4.17% to THB225.00/share, with a trading value of THB2,451 million.

The share price of Total Access Communication Public Company Limited (SET: DTAC) rose THB1.50/share or 3.39% to THB45.75/share, with a trading value of THB764 million.

The share price of True Corporation Public Company Limited (SET: TRUE) rose THB0.16/share or 3.49% to THB4.74/share, with a trading value of THB1,467 million.

Maybank Securities (Thailand) (MST) stated that the increase in ADVANC, DTAC, and TRUE share prices was mostly due to the market’s recent focus on the TRUE-DTAC merger, speculating on the establishment of a new company by the two parties. This would lead to less competition in the industry and a rise in ARPU, which would benefit all mobile operators. TRUE-DTAC will have the largest market share in the telecommunications industry if the merger is successful.

MST rates all three stocks as “BUY,” but raises the target price for ADVANC to THB235.00 (from THB215.00), while maintaining the target price for TRUE at THB5.09 and DTAC at THB45.10.