ASEAN KEY DESTINATIONS
SET to be upgraded
The Stock Exchange of Thailand said on Wednesday the Thai capital market was being upgraded from Secondary Emerging Market to Advanced Emerging Market status in the FTSE Global Equity Index Series, according to an announcement by FTSE Group, the global index provider.
SET president Charamporn Jotikasthira said the upgrade, which is effective from next March, would enhance the confidence of investors worldwide as the Thai market would in the future be in the top-level group of emerging markets.
This will attract more investment from major global funds, which use FTSE indexes and benchmarks for investment decisions. "The FTSE has considered significant improvement in several aspects of the Thai capital market. We so far have done it well, which is the result of collaboration between the SET, the Securities and Exchange Commission, government agencies and securities companies, especially since the Thai Capital Market Development Plan was established in 2009," he said.
He said the FTSE Group's decision to upgrade the SET from the Secondary Emerging Market grouping to Advanced Emerging Market status was a good sign that the bourse is of the required global quality and standard.
This will also challenge foreign investors to increase their investment in the exchange, he added.
Veerathai Santiprabhob, SET chief strategy officer, said the upgrade reflected recognition from foreign institutional investors, as the FTSE's committee consists of senior fund managers and experts from top financial institutions.
Since Thailand was selected on the FTSE's watch list for possible upgrade to Advanced Emerging Market status in September last year, the SET and other organisations have put great efforts into enhancing the understanding and confidence in Thailand's capital-market structure and regulations among both the FTSE and foreign fund managers, he said.
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