Delta shares dip 18% on SET measure

Shares of Delta Electronics (Thailand) plunged by almost 20% in morning trade yesterday after the Stock Exchange of Thailand (SET) imposed market surveillance measures on the bourse’s largest stock in terms of market capitalisation, citing unusual trading patterns.
According to the SET, Delta will be placed under Level 1 market surveillance measures until Dec 11, while the bourse urged investors to exercise due diligence and carefully consider any investment decision.
During the Level 1 restriction period, member companies are required to exclude Delta from credit limit calculations and to apply a cash balance requirement, meaning a 100% cash deposit of the trading value is required for all Delta share transactions.
If unusual trading patterns persist without justifiable fundamental factors, the SET will progressively implement more stringent measures, escalating to Level 2 and Level 3 pursuant to established market surveillance protocols, the bourse said in a statement.
“Delta’s price rose continuously and substantially above fundamental valuations. As of Nov 20, Delta recorded a new record high of 173.50 baht, with a price-to-earnings ratio of 101 times and price-to-book value ratio of 28 times,” according to the SET.
During Wednesday’s afternoon session, Delta surged 3.58% from its morning close, which had already risen 1.21% from the previous day, leading the market with the highest trading value of 2.37 billion baht, up from 667 million in the morning session, “without any material supporting information or developments”, noted the bourse.
“The price movement affected overall market conditions as Delta’s market capitalisation has soared by 57% from 1.38 trillion baht to 2.16 trillion in less than two months since October 2024,” the statement noted.
By midday yesterday, Delta dipped by 18.2% to finish at 142 baht, dragging down the overall SET index by 1.62% to 1,439.02 points.
Under Level 2 market surveillance, stocks are prohibited from net settlement and credit limit calculations, restricted to a cash balance requirement and auction trades.
In Level 3 surveillance, stocks are subject to a one-day trading suspension, prohibition of net settlement and credit limit calculations, with a cash balance requirement and auction trade mandatory.
In a filing to the SET, chief executive Cheng An clarified that Delta doesn’t have any development or material information that is still being considered for disclosure to the SET in the near future.
This includes a capital increase, joint venture, acquisition or disposition of assets, or a significant dispute “which may effect an unusual trading pattern”, noted the filing.
“Should there be any significant information, the company will notify the SET in accordance with the relevant rules and regulations,” he said.