Most targets hit in first 3 quarters: SET
Thai stocks are likely to remain at the forefront of foreign investors' minds for a long time, thanks to the growing Asean economy, while the Stock Exchange of Thailand saw most of its nine-month results hit this year's targets.
SET president Charamporn Jotikasthira said yesterday that the bourse could retain its attractiveness in the eyes of foreign investors in the medium to long term partly because of the economic expansion in Asean and neighbouring countries, where Thai listed companies operate. Holding-company regulations also allow Thailand to become a centre for capitalisation in this region.
“In the third quarter, capital markets across the world slowed down on the US and European economic problems. However, the Thai [stock market] had some positive factors, including global market liquidity, and satisfactory earnings performance of Thai listed companies.
“The Thai stock market set records, with the SET Index seeing the region’s highest rise of 26.6 per cent and the historical record for its market capitalisation of Bt10.7 trillion,” he said.
For the first nine months of this year, the SET reached most of its targets, excluding newly listed companies’ market capitalisation and derivatives’ daily trading volume.
The newly listed companies’ combined market capitalisation is expected to reach Bt100 billion this year, short of the estimate of Bt120 billion. Derivatives’ average daily trading volume was projected at 55,000-57,000 contracts, but actually averaged 44,100 contracts.
“The SET may not revise this year’s plan as there are only two months left. We may not be able to do more for the plans that may not meet the targets. The IPO [initial public offerings] market capitalisation may not hit the target, as several companies could not get their IPO shares traded in the market this year.
“For the derivatives market, we may have to provide knowledge about new products for investors,” he said.
This year’s total market capitalisation is anticipated to touch the target of Bt195 billion. Of that, Bt100 billion is expected to come from newly listed companies and the rest from fund-raising on the secondary market. The fund-raising through public offers is expected to meet this year’s target as some large companies plan to mobilise funds. Public offers totalled Bt81.9 billion for the first nine months.
Total securities trading accounts numbered 763,000 for the first nine months, compared with this year’s target of 750,000. Online trading accounted for 52.5 per cent of individual investors’ total trading value, compared with the 2012 target of 50 per cent.
Daily turnover averaged Bt36 billion during the first three quarters, compared with this year’s target of Bt31 billion to Bt32 billion.
Veerathai Santiprabhob, an executive vice president of the bourse, said the SET closed the third quarter with the region’s highest rise of 26.67 per cent, to 1,298.79 points.
Most industry indices jumped more than 30 per cent from last year. The technology (communications) industry experienced the highest increase of 48.76 per cent, followed by services with 45.76 per cent and financials with 35.05 per cent.
In the third quarter alone, trading volume averaged at Bt31.2 billion, down 5.11 per cent from the same quarter a year earlier. Overseas investors were net buyers of Thai stocks worth Bt1.68 billion. Most foreign buying took place in September, lifting nine-month foreign net buying to Bt65.7 billion. Foreign trading accounted for 23.93 per cent of total trading, up from 22.78 per cent in the previous year.
