Experts unsure if SET move to extend trading session would boost volumes
The Stock Exchange of Thailand (SET) is extending the afternoon trading session by 30 minutes starting from March 25. The extension of trading time applies to both the SET and the Market for Alternative Investment, as well as the Thailand Futures Exchange.
Friday (March 22) was the last day of trading from 2.30pm to 4.30pm.
The stock market's new pre-open session in the afternoon from next week will be from 1.30pm to 2pm, with afternoon trading hours from 2pm to 4.30pm.
The financial community is unsure whether this move will help boost trading volumes in the Thai stock market.
Paiboon Nalinthrangkurn, CEO of TISCO Securities and president of the Investment Analysts Association, said that extending the trading hours was unlikely to be directly related to any significant increase in trading volumes in the Thai stock market. This is because investors' decision to trade would depend more on fundamental market factors.
If the Thai stock market is backed by strong fundamentals, trading volumes would go up, he said, adding, key fundamental factors included sustained economic recovery, the absence of worrying domestic political factors, and efforts to attract foreign funds inflows back to a sustained uptrend. This requires improved performances by Thai registered companies and the listing of new high-potential stocks.
Natapon Khamthakrue, director of investment analysis at Yuanta Securities(Thailand), said that extending the stock trading session by 30 minutes in the afternoon is not expected to significantly increase trading volume or cause market volatility. This extension was also unlikely to impact the Thai stock index on March 25 because the overall trading hours remained the same, and the European economic announcements had already been factored by the market, Natapon said.
The actual increase in trading volume in the Thai stock market would depend on fundamental factors and investor confidence, Natapon said. From a fundamental perspective, Thai stock prices are lower compared to other markets amid stricter measures by the SET and the Securities and Exchange Commission. If investor confidence rises significantly, it would undoubtedly lead to an increase in trading volume in the Thai stock market, Natapon added.
Watchara Kaewsawang, a major investor, said that the extension of trading hours is aimed at aligning more with the securities markets in the region and providing investors with more time to trade and adjust their strategies in response to the news. Watchara said the move was expected to have a positive impact on improving market agility and increasing trading volume from investors.
