The Stock Exchange of Thailand (SET) is warning investors to exercise caution in trading shares of Delta Electronics (Thailand) Plc (DELTA), an electronic components manufacturer.
The SET said that the first level of market surveillance measures imposed on DELTA stock since April 3 came to an end on Friday and the stock would be traded as normal from Monday onwards.
But the exchange urged investors to thoroughly and cautiously study information related to DELTA, including research issued by securities companies, before making investment decisions.
As of Friday, DELTA's price to earnings ratio (P/E) and price per book value (PBV) stood at 72.35 times and 20.30 times, respectively, the SET said.
If DELTA's irregular trading activities continue without any fundamental support, SET will impose the second and the third levels respectively of market surveillance measures on DELTA's stock in compliance with the existing regulations, the SET said.
On March 31 the SET issued a statement warning investors to exercise caution when trading DELTA shares after the price surged for three consecutive days to reach an all-time high of more than 1,100 baht apiece on that day.
Market surveillance measures comprise:
The first level: Excluded from credit limit and 100% cash prepayment (cash balance account)
The second level: Prohibited from net settlement, excluded from credit limit and 100% cash prepayment (cash balance account)
The third level: Suspension for one business day, prohibited from net settlement, excluded from credit limit and 100% cash prepayment (cash balance account)
