Delta Electronics Shares Tumble in Bangkok Due to Exchange Curbs

(Bloomberg) -- Delta Electronics (Thailand) Pcl shares slid the most in four months after the stock exchange imposed market surveillance measures on the securities following their record-breaking rally.

The stock was also sold off after Stock Exchange of Thailand President Asadej Kongsiri urged investors in the company to look at the valuation fundamentals and make their “decisions carefully.”

Shares in Delta, Thailand’s most valuable publicly traded company, slid as much as 12% Friday, the most since June 4, before trimming losses to trade about 10% lower on the day at 2:55 p.m. Bangkok time.

“The stock is likely to cool off temporarily, but our strategy remains ‘buy on dips,’ given its position as Thailand’s only pure-play AI beneficiary,” Bualuang Securities Pcl analyst Napon Jaisan, wrote in a client note. “We expect third-quarter earnings to set a new record, potentially fueling a post-surveillance rebound.”

Delta Thailand shares had surged 25% this month through Thursday, while the nation’s benchmark SET Index gained just 3.1%. The stock had more than tripled in price from its April low, boosted by optimism over its role as maker of components for artificial-intelligence data centers.

Delta shares can no longer be used as collateral in the calculation of credit lines, and investors must pay the full amount of cash prior to trading the securities, according to the first-level market surveillance measures announced by the stock exchange late Thursday.

The stock exchange decides to impose restrictions based on a number of factors including the turnover ratio, the trading value, and the price not corresponding with fundamentals such as the price-to-earnings ratio, according to information on its website.

Delta shares slid last November when the exchange also triggered market surveillance measures following a surge in the stock price. The securities fell to a three-year low before rallying.

The company was not aware of any reason for the latest surge in its share price, it said in a statement published Thursday. 

Delta shares have been “consistently ranking as the most active for several consecutive days,” the exchange said. The company’s market capitalization represents almost 15% of Thailand’s equity benchmark index, it said. The restrictions take effect through Oct. 30, the stock exchange said.

(Adds exchange president comments in second paragraph, analysts comments in fourth.)

More stories like this are available on bloomberg.com

©2025 Bloomberg L.P.