BEM Falls 5% as the Scraping of Expressway Concession by BJT’s “Anutin” Circulates
BEM fell 5% to ฿11.40/share as rumors of BJT’s “Anutin” will scrap the expressway concession agreement circulated through the market.
On June 12, 2019, the share price of Bangkok Expressway and Metro Public Company Limited (BEM) has plunged as much as ฿0.70/share or 5.83% to the lowest of today’s session at ฿11.30/share. BEM closed the day at ฿11.40/share with a trading value of THB 2.95 billion.
There are rumors circulated regarding the reasons for the sudden plummet. Finansia Syrus stated that there was a rumor of dismissing the president of the State Enterprise Labour Union of Expressway Authority of Thailand, but the Authority stated that the statement was not true while the Boards’ resolution of the extended expressway concession for 30 years to end with the dispute with EXAT remains on the table. The concession includes 1) Si Rat Expressway (A, B, C), 2) Si Rat Expressway (D), 3) Bang Pa-in-Pak Kret Expressway (C+).
Reporter also states that Mr. Anutin Charnvirakul, the leader of Bhumjaithai Party, has informed one of the security companies that if he takes the position of the Ministry of Transport, he will not approve the aforementioned concession.
The most evident possibility of the fall might due to the profit taking from investors as the price has been advancing nonstop and has surpassed analysts’ consensus target price which is ฿11.60/share.
