Shares of electric vehicle (EV) businesses rose yesterday as investors expect the government to launch an array of subsidies and support measures to promote the use of EVs.
Gainers included Global Power Synergy (GPSC), which closed at 75.50 baht, up 2.03% in trade yesterday, Energy Absolute (EA), which closed at 95.50 baht, up 4.37%, and Nex Point (NEX), which closed at 19.20 baht, up 6.67%.
Kitpon Praipaisarnkit, vice-president at UOB Kay Hian Securities, said stocks related to EVs and electric batteries rose following news from the cabinet meeting yesterday suggesting the government is considering launching measures to promote the use of EVs after Energy Minister Supattanapong Punmeechaow submitted the measures to promote EV production for the cabinet's consideration.
"Regardless of whether the cabinet passes the proposal, these EV stocks will certainly be sold to take profits as they are not for long-term investment," said Mr Kitpon.
"They are speculative stocks,"
Analysts at KTBST Securities said if the government passes the measures to support EVs, their implementation will benefit many EV-related business operators, including EA, GPSC, Somboon Advance Technology (SAT) and AAPICO Hitech (AH).
The analysts said shares of these companies surged yesterday as investors speculated on the stocks.
The brokerage also said some investors are speculating on stocks that will benefit from a tax deduction for diesel, such as petrol stations.
As for measures to support EVs, some media reported the government will provide a 150,000-baht subsidy per vehicle for EV buyers.
The subsidy will encourage customers who plan to buy traditional cars to delay their purchase and wait for the EV subsidy, said a source from the car manufacturing industry who requested anonymity.