Analysts forecast stock impact of flooding in Songkhla

The severe flooding in southern Thailand is a short-term drag on economic activity, but eventually will support a rebound in retail and construction-related stocks once the recovery begins, say analysts.

- NUNTAWUN POLKUAMDEE NAREERAT WIRIYAPONG

Hat Yai is a major district in Songkhla, the province with the largest economy in southern Thailand and the 14th largest in Thailand.

Asia Plus Securities (ASPS) said the floods affected several businesses in the South, including listed companies with factories or distribution centres in the region.

Sri Trang Agro-Industry (STA), the world’s largest fully integrated producer and distributor of natural rubber and a leading rubber glove manufacturer, and Sri Trang Gloves (Thailand) (STGT) have many factories producing natural latex gloves and rubber gloves in Hat Yai.

The canned tuna and animal feed businesses of Tropical Canning (Thailand) are also affected by the floods in terms of raw materials and exports.