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SET urges caution on MGI shares

The Stock Exchange of Thailand (SET) is warning investors to exercise caution when investing in Miss Grand International (MGI) shares after the price jumped 256% in the first five days of trading on the Market for Alternative Investment (MAI).

The SET issued the warning on Wednesday as MGI shares continued to increase with high trading value throughout the five business days of trading on the MAI, surging 256% from its initial public offering (IPO) price of 4.95 baht on Dec 14.

MGI fluctuated during morning trade on Wednesday, hitting a ceiling of 20.10 baht, an increase of 29.7% from a day earlier, before dropping quickly to a low of 13.60 baht.

At the mid-day close, MGI was quoted at 17.60 baht, ranking second in terms of trade volume on both the SET and the MAI at 1.32 billion baht.

The stock traded at 17.30 baht on Wednesday afternoon, up 11% from the previous day, with trading value of 1.37 billion baht.

Average trading value the past five business days was 995 million baht.

“The SET asks investors to use caution and consider fundamental factors and the trading conditions of MGI before deciding to invest,” the bourse said.

Meanwhile, trade of SCG Decor (SCGD), the flagship business of Siam Cement (SCC), fell by 12.7% or 1.40 baht from its IPO price to 10.10 baht in late afternoon trade as the share debuted on the SET on Wednesday.

Finansia Syrus Securities (FSS) identified SCGD as a stock with strong fundamentals. It is a major manufacturer and distributor of floor tiles in Thailand, Vietnam, the Philippines and Indonesia.

The manufacturer has an extensive history and a widely known brand covering all market segments, with highest market share in Thailand.

The company’s brands include Cotto, Sosuco, Campana, Prime, Mariwasa and Kia.

The brokerage projects SCGD’s normal profits in 2023 will slow before growth of 95% in 2024 and 12% in 2025 thanks to lower gas costs and a larger proportion of high-margin products.

FSS estimates the appropriate price for SCGD next year is 15 baht per share.

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