On Wednesday morning (July 22, 2020), the Sri Trang Agro-Industry (STA) and Sri Trang Gloves Thailand (STGT) share prices dropped as a response to positive news for a coronavirus vaccine.
As of 10:17 a.m. local time in Thailand (GMT +7), STA fell down 6.19 per cent, 1.75 baht per share to 26.50 baht per share; while, STGT dropped 9.64 per cent, 8 baht per share to 75 baht per share.
The price reduction was likely due to the reports coming from Oxford University that they receive positive results from the coronavirus vaccines test.
The demand for rubber gloves may cause the share price to decline as the vaccines could help strengthen patients’ immune system in fighting against the virus.
The UK government has already ordered the mass production of 100 million doses of the vaccine, but the Oxford team still has to run more tests on a larger sample group to ensure the vaccine’s safety.
The result of the coronavirus vaccine should be ready before the end of 2020, but they estimated that it would be ready for worldwide use at the beginning of 2021.
STGT is a subsidiary of STA, renamed from Siam Sempermed, and has been operating as a rubber business since 1989.
Earlier, STA’s plan to list STGT started before the COVID-19 outbreak. The effects of the pandemic in March have increased investor interest as the demand for the gloves increased.
