SET's US roadshow highlights sustainability call
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During the Stock Exchange of Thailand's roadshow to four US cities, institutional investors, while expressing interest in expanding their positions in the Thai stock market, urged the bourse to promote the "sustainability" of listed companies.
SET president Charamporn Jotikasthira said the exchange had recently completed a sustainability manual for listed companies as well as a corporate-responsibility manual.
The success of the mission, aimed at offering new options to institutional investors and luring more investment, coincided with the recent return of foreign investment in the stock market here, sparked by the European Union leaders’ agreement last week to provide financial assistance to ailing banks in the euro zone.
The foreign buying spree continued yesterday, exceeding sales by Bt1.73 billion,
which helped float the SET Index up 16.63 points or 1.42 per cent to 1,188.74 on turnover of Bt26.3 billion. Stock analysts expect the portfolio investment inflow to buoy the market for a short while, along with commodity prices.
Foreign investors started selling off Thai shares in May, after Greece failed to form a government. The retreat continued in June, and this slashed their year-to-date net-buy position to Bt63.54 billion at the end of the month, down from the peak of above Bt80 billion.
From June 25-29, the SET gave presentations in four cities – Boston, New York, Chicago and San Francisco – in cooperation with Asia Credit Securities and BNP Paribas. Joining the events themed “SET US Road Show: Riding Thailand’s Urbanisation Wave” were eight blue-chip companies. This is the first time that Thailand has hosted a roadshow outside Boston and New York.
“In this roadshow, we offered investment options to institutional investors and received overwhelming interest,” Charamporn said. “This was a good sign that investors are ready to return to Thailand.
“Most of the questions asked were about the current condition of the stock exchange, liquidity, and listed companies’ earning growth and financial health. Worrying them now are the negative impacts from the euro-zone crisis,” he said.
“We have assured them that in the past seven years, despite negative factors, listed companies have demonstrated continued growth in earnings. We also updated them on the Asean Link.”
