The share price of Gulf Energy Development Public Company Limited (GULF) has been on a rise as of late, hiked 17.4% YTD to close at ฿195.00/share on January 14, 2020.
The share price continued to rise following the announcement last Friday of the company entered into a shareholders’ agreement with One Power Services Company Limited to operate the power distribution system for One Bangkok Project through Bangkok Smart Power Company Limited (BSP).
The company is expected to receive earnings from shareholding in the project and as an operator with a project cost of approximately 3,570 million baht.
Investors are hoping that the share price would reach ฿200.00/share soon, and it could be when the circumstance of the U.S. and China trade deal has reached this point.
On the second day of the meeting between the U.S. and China in Washington, U.S. Treasury Secretary Steven Mnuchin said that the U.S. will maintain tariffs on Chinese goods until the completion of the “Phase Two” deal.
Following the U.S. President Donald Trump’s statement earlier and the news report, the Phase Two deal could be as far as after the Election in November to be completed.
However, the statement had crushed investors’ hope to see some rollback possibly 7.5%-15% on Chinese goods in this deal.
Asia markets responded negatively on the morning of January 15, which could be a positive factor for GULF or any other stocks related to power generating business. Investors always see these types of business as defensive stocks amid volatility in the market from economic slowdown and trade war.
However, GULF had made a high jump as of late, the buying pressure could slow down as well while the negative sentiment from the U.S. – China deal could plunge the share prices for a period of time.
All in all, if GULF could make it to ฿200.00/share, it would post a new milestone for the company.
วันที่ January 15, 2020, 09:54