ASEAN KEY DESTINATIONS
SET News 13/2013
Feb 15, 2013
Thai bourse to adjust rule for securities traded in cash balance account
BANGKOK, February 15, 2013 – The Stock Exchange of Thailand (SET) announces the extension of the period of trading using cash balance account for securities showing abnormal trading patterns, for which investors are required to deposit the full purchase amount prior to trading, to six consecutive weeks, from the previous minimum of three weeks, to be in line with the current trading situation and protect investors from damage.
The adjustment will be effective from March 1, when SET will announce the revised list of stocks which need to be traded using cash balance account.
SET has announced the adjustment of the cash balance account rule as equities have risen sharply in term of prices and volume since January 2013, with trading of non-SET 50 stocks accounting for more than 50 percent of total trades, up from 36 percent last year, and with more than 100 stocks trading with price per earnings ratios of over 40 times. The proportion of retail investors has increased to 62 percent of total investors this year, up from 50 percent last year.
In addition, there has been a rising number of stocks with high turnover and prices not based on their fundamentals. Thus, 44 stocks have been traded using cash balance account so far this year, compared with a total of 50 stocks for the whole of 2012, reflecting an increase in the number of highly-speculative stocks.
SET has asked broker members to advise investors to be more careful in trading highly-speculative stocks by considering the fundamentals of each stock and monitoring information from reliable and formal sources, including SEC turnover list announcements and SET’s list of securities required to be traded through cash balance account, with updates posted every Friday on www.set.or.th.
SET Group “Matching Your Right Financial Opportunities”
For more information, please contact S-E-T Call Center +66 (0) 2229 2222
Members of the media should contact the Public Relations Unit, Corporate Communications Dept.:
Kanokwan Khemmalai, tel: +66 (0) 2229 2048 / Arada Kultawanich, tel: +66 (0) 2229 2796
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