Briefs

The Government Savings Bank (GSB) and the Stock Exchange of Thailand (SET) will jointly establish the SMEs Private Equity Trust Fund to provide low-interest loans for working capital to small and medium-sized enterprises, in line with the government’s policy to support SMEs in terms of capital funding and enhancing their competitiveness.

GSB president Chartchai Payuhanaveechai said the size of the fund was capped at Bt2 billion, with its initial size set at Bt500 million.

The loans are targeted at four industries: start-up businesses with good potential; SMEs with strong growth potential to contribute to economic growth; SMEs that are major suppliers to the private and public sectors; and SMEs categorised as "social enterprises".

Start-up businesses will be eligible for a maximum credit line of Bt10 million, and Bt50 million for small and medium-sized businesses.

The SET will contribute Bt100 million to GSB’s initial Bt500 million in capital for setting up the fund, which is expected to reach Bt2 billion as GSB seeks more investors, Chartchai said.

SET president Kesara Manchusree said the bourse was ready to help boost the economy by supporting the growth of start-up businesses and social enterprises in line with its policy to help Thai business operators gain access to funding to expand their operations.

Bill on state units

A bill on state-enterprise supervision and management will be proposed to the State Enterprise Policy Office (SEPO) for consideration on Monday.

Ekniti Nitithanprapas, director-general of Sepo, said the bill aimed at reforming state enterprises and not privatising them, and there would be no impact on the affected enterprises status or employment.

He said the bill aimed at enhancing state enterprises’ efficiency through good corporate governance.

SET may hit new low

There is a possibility that the SET Index will hit a new low this quarter of 1,200 points or below, says Tisco Securities.

In a research note, it cites China’s economic shrinkage, volatile oil prices and downward revision in listed companies’ earnings as the reasons.

“There is also a chance that all will improve, and in that case, the index could rebound to 1,300 points,” it said.

Yesterday, the Stock Exchange of Thailand lost 1.20 per cent by close at 1,263.29 points, losing 15.32 points or 1.20 per cent from Wednesday. As of yesterday, the index had shed 1.19 per cent from the end of 2015.

Meanwhile, Japan’s benchmark Nikkei 225 Stock Average fell sharply yesterday as shares were pulled down by a stronger yen and losses on Wall Street.

The Nikkei lost 474.68 points, or 2.68 per cent, to close at 17,240.95 after briefly dipping below the 17,000 mark for the |first time in three and a half months.

But China stocks rebounded roughly 2 per cent, as some investors bet that the lows hit during last summer’s rout would not be so easily breached.

On Wall Street, the blue-chip Dow Jones Industrial Average fell 2.21 per cent on Wednesday while the technology-heavy Nasdaq Composite Index plunged 3.41 per cent.