ASEAN KEY DESTINATIONS
Thai chamber pushes end to enviro-deadlock
The government needs to end the environmental deadlock in Rayong’s Map Ta Phut industrial estate within the next month, to support private sector investment, Dusit Nonthanakorn, chairman of Thai Chamber of Commerce (TCC), said on Thursday. In addition, the government must speed up its plan to reform the tax structure to get ready for membership of the Asean Economic Community in the next five years, according to the Bangkok Post. “If the state fails to adjust the tax structure to attract more investment, there is a possibility the private sector will turn to investing in other countries in Asean,” he said. The Monetary Policy Committee’s decision to raise the repurchase rate by 0.25 per cent yesterday shows that the economy is continuing to expand, he said.
“It was in line with the projection of the private sector, which has already prepared for the higher interest climate. One major risk factor for the country is the problem of corruption, which shows no sign of declining,” the TCC chairman said.
(Tags: investment, FDI, tax structure, Asean Economic Community, corruption, Thailand)
Thai bourse up in first quarter
Foreign investors were net sellers of 60 billion baht worth of Thai stocks in the second quarter as investors closed off positions due to uncertainty about the country's political stability and growing risks in the global economic recovery, the Bangkok Post reports. But the Stock Exchange of Thailand (SET) index still closed in positive territory in the first half at 797.31 points, up by 8.55 percent from the end of last year thanks to solid fundamentals of listed companies and a double-digit earnings rebound.
The SET index boosted market capitalisation to 6.44 trillion baht as of June 30, up by 1.7 percent quarter-on-quarter and 8.14 percent from the end of last year. The Market for Alternative Investment (MAI) index closed at 230.84 points on June 30, up by 8.67 percent quarter-on-quarter and 7.22 percent from the end of 2009. Market capitalisation in the MAI was 43.2 billion baht, up 12.9 percent quarter-on-quarter.
Yunyong Thaicharoen, head of the SET's Capital Market Research Institute, said foreign investors had shifted their status from net buyers of 42.47 billion baht in the first quarter to net sellers of 17.53 billion baht in the first half.
Retail investors were net buyers of 49.05 billion baht, increasing their market portfolios to 58.03 percent in the second quarter, from 55.9 percent in the first. Institutional investors were also net buyers of 10.95 billion baht, while securities firms remained net buyers for the third consecutive quarter at 7.44 billion baht.
Trading value was 22 billion baht a day on average last month, down by 7.97 percent from May. Foreign investors became net buyers of 2.87 billion baht, institutional investors were net buyers of 4.56 billion baht, securities firms proprietary trading amounted to 1.38 billion baht, and retail investors were net sellers of 8.8 billion baht.
Internet trading in May was 21.09 percent of total trading value. Combined futures trading in June was 371,780 contracts with average daily trading of 16,899 contracts, down by 8.83% from May.
The forward price-to-earnings ratio in the second quarter was 11.9 times, up from 11.53 in the first quarter, while dividend yields rose from 3.34% to 3.91%, still high above other regional markets.
Average trading value for the SET and MAI in the second quarter was 23.49 billion baht, up by 19.94% quarter-on-quarter and 8.14% year-on-year.
Trading on the Thailand Futures Exchange in the second quarter was 18,179 contracts a day, up by 24.5% quarter-on-quarter due to active trading in SET50 index futures and single stock futures. Regarding fund-raising, listed firms mobilised 38.44 billion baht from the stock market, up 2.62 times from the first quarter. New listed firms are Teera-Mongkol Industry and Cyber Planet Interactive, as well as the Thai Commercial Investment property fund. Fund-raising through secondary markets was 36.32 billion baht, including private placement, rights offering and warrants
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