SET may raise target for trading value

SET president Charamporn Jotikasthira said that this month the bourse would propose to its board that it consider raising the full-year target even though the trading value in the second half has slowed, reflecting the domestic and foreign economic situations.

He added that the SET now offered a favourable atmosphere for those interested in raising funds through initial public offerings.

He acknowledged that fund outflows were still weighing on the local bourse but said he believed that the funds would return to the local and foreign stock markets, given that equity investment was still promising good returns.

He added that during this period the SET Index had risen to a 17-year high, indicating an appropriate time for companies to raise funds in the market.

The index yesterday rose in line with other Asian stock markets due mainly to US Federal Reserve chairman Ben Bernanke’s  remark  on Wednesday that the United States would continue to need stimulus. The SET Index yesterday closed at 1,447.04, up 4.22 per cent. The trading value was Bt55.125 billion.

According to Bloomberg, Bernanke called for maintaining accommodation even as the minutes of policy-makers’ June meeting showed them debating whether to stop bond buying by the Fed this year. 

Highly accommodative monetary policy for the foreseeable future is what is needed in the US economy, Bernanke said. 

The Fed chairman spoke just three hours after the US central bank released minutes of the June 18-19 gathering showing that about half of the 19 participants in the Federal Open Market Committee wanted to halt US$85 billion (Bt2.65 trillion) in monthly bond purchases by year-end. At the same time, the minutes showed many Fed officials wanted to see more signs that employment is improving before backing a trim to bond purchases known as quantitative easing.

In a separate matter, the secretary-general of Thailand’s Securities and Exchange Commission, Worapol Sokatiyanurak, said it recently approved the establishment of two infrastructure funds, in the transport and electricity businesses. A telecom business is also filing for approval to set up an infrastructure fund.