Shares of Central Pattana Plc (CPN) and Central Plaza Hotel Plc (CENTEL) dropped marginally yesterday, as the impact from the fire that broke out at the CentralWorld complex is expected to be minimal, securities firms say.
CPN shares fell by 25 satang, down 0.3%, to close at 74.25 baht in trade worth 600 million baht, while shares of CENTEL declined by 25 satang, down 0.6%, to close at 43.50 baht in trade worth 294 million baht, according to data from the Stock Exchange of Thailand.
The fire broke out on Wednesday, starting on the eighth floor of CentralWorld at around 5.40pm. At least two people died and 15 others were injured in the fire.
The recent fire led to negative investment sentiment for CPN because of the loss of life, Asia Plus Securities (ASP) said in a research note.
CentralWorld is CPN's largest property, with 200,000 square metres of rental space. The downtown shopping complex generates annual revenue of 4 billion baht, contributing to 12% of CPN's revenue in 2018.
The cause of the fire and damage incurred are pending investigation, but it's believed that the company's property is insured and compensation could be paid, ASP said.
The initial assessment of the fire's impact on CPN's short-term profit is 1-4% for the second quarter and less than 1% for full-year 2019, given that CentralWorld is closing for 5-10 days, according to KGI Securities Thailand.
Impact from the fire breaking out at CentralWorld is expected to be limited, with adverse effects on tourism not anticipated, Finansia Syrus Securities (FSS) said in a research note.
Both CPN and CENTEL are covered by all-risk insurance, business interruption insurance, public liability insurance and other insurance policies, according to FSS.
CENTEL is expected to be included in the MSCI Thailand index, while CPN is projected to have a greater weight adjustment in May, FSS said.
