SEC,ASCO address irregular trading

 

 

Combined transactions of retail investors are now 60 per cent of daily market value, dropping from the recent peak of 70 per cent. 

 

SEC Secretary-General Vorapol Socatiyanurak said the SEC in collaboration with the Association of Thai Securities Companies (ASCO) urges each securities house 

to conduct company reports on top 20 securities with the most active volumes traded by all customers or top 10 securities with the most active volumes traded by individual customers over the past week, in case that the securities companies have not yet conducted securities research (full report) of such securities. The ASCO’s regulation will be effective on June 1, 2013. 

The company report will contain useful data for investment decision making; such as key financial ratios in comparison with information of other companies in the similar industry. The report will not, however, provide any recommended price.  The ASCO has been in talk with its members to set the report format before submitting to the SEC for approval of ASCO’s regulation. 

Recent securities trading statistics indicated that investment of local retail investors, compared to others, concentrated in the most active trading volume of securities with 

a high price to earnings (P/E) ratio as well as those put under cash balance rule. Most of those securities have yet been covered by the securities companies’ research reports. 

In addition, year-to-date amounts of securities trading accounts opened by new investors have increased significantly. As such, preparation of the company report will provide 

the retail investors with more information for their decision making.