ASEAN KEY DESTINATIONS
The Stock Exchange of Thailand (SET) announces its three-year (2014-2016) strategy on “Energizing the industry for sustainable growth,” which in 2014 aims to build a quality-focused capital market culture, become a key Greater Mekong Sub-region (GMS) connector, and enhance infrastructure and capability to cope with any uncertainty, while proceeding with plans for its new derivatives trading system to go live by mid-2014.
SET will also reform the Thai capital market in four key areas, which are: financial literacy, bond market, gold market, and agricultural commodity.
In 2013, SET marked great milestones to become ASEAN’s number one in key areas, which were: (1) Average daily trading value rose to an all-time high of THB51 billion (USD1.6 billion), the highest in ASEAN; (2) Market capitalization from initial public offerings (IPOs) jumped to a record high of THB340 billion, with BTS Rail Mass Transit Growth Infrastructure (BTSGIF), an infrastructure fund IPO, being the biggest IPO in ASEAN; (3) MSCI added five Thai stocks into MSCI Global Standard Indices, the highest number of additions in Asia, and (4) Dow Jones included three Thai listed companies in the Dow Jones Sustainability World Index, the highest number of additions in ASEAN, and (5) the ASEAN CG Scorecard showed that average corporate governance (CG) score of Thai listed companies topped that of all other ASEAN companies.
Sathit Limpongpan, SET chairman, revealed that in 2014 the exchange expected to promote a quality-focused capital market culture to issuers, investors, and intermediaries, covering both products and services. In addition, SET was ready to be a key sub-region connector, and enhancing the Thai capital market’s infrastructure and capability, enabling it to more effectively connect with the global market. These missions underlined SET’s vision, aiming to matching the right financial opportunities for businesses and investors.
“To build stability and boost competitiveness of the Thai capital market, SET will reform the Thai capital market in four key areas, which are: (1). Upgrading financial literacy at all levels, 2. Developing the bond market to improve its accessibility and liquidity, (3) Developing the gold market, and (4) Improving agricultural commodity by encouraging the government sector to use derivatives in managing risk from commodity price volatility,” Sathit continued.
Charamporn Jotikasthira, SET president, said,”2014 should be challenging for SET due to internal and external uncertainties. Thus, SET will develop issuers and the investor base both in terms of quality, and strengthen intermediaries so that we can grow and achieve new heights together. Also, SET plans to develop products, services, and its trading systems to meet effectively meet the demand of investors and other capital market’s stakeholders.
“With its commitment to drive the Thai capital market as a leading market in the region throughout 2013, SET has become ASEAN’s leader in terms of having the highest average daily trading vale, and successfully listed the IPO with the largest market capitalization in ASEAN this year, which was the BTSGIF infrastructure fund, with a THB6-plus billion market value. Meanwhile, SET was also attracting holding companies investing in the Greater Mekong Sub-region to list in Thailand, helping boost the strength and attractiveness of the local capital market.”
In 2014, SET aims to grow market capitalization from IPOs by THB210 billion (USD6.46 billion), increase fundraising from existing listed securities by THB180 billion, increase average daily derivatives trading to 75,000 contracts, and boost new derivatives accounts by 15,000, while the number of new securities trading investors will rise by 80,000 persons.
To become a key regional connector, SET will focus on expanding businesses to Cambodia, Laos, Myanmar, and Vietnam, as they have high growth potential and high need for funds. In addition to listing holding firms that invest abroad, SET plans to revise regulations to support foreign listings.
SET has also continuously developed its IT systems and expects that its new derivatives trading system will go live by mid-2014. The new system will work on the same platform as SET Connect, which is SET’s new securities trading system, enabling investors to trade between the stock and derivatives markets in the same time. Moreover, SET’s new clearing system, which is of international standard and supports multi-currency and multi-market trading, will be ready to operate in 2014.
2014 2013 (January – Present)
Market cap from newly-listed companies THB 210 billion THB 288 billion (as of Dec 20, 2013)
Fundraising from existing listed securities THB 180 billion THB 152 billion (as of Dec 20, 2013)
Average daily derivatives trading volume 75,000 contracts 67,862 contracts (as of Dec 20, 2013)
New stock-trading investors 80,000 persons 87,574 persons (as of the third quarter)
New derivatives accounts 15,000 accounts 10,512 accounts (as of end-November)
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