KGI DW13 marks 17 years with 70% market share in volatile trading market

The company said fund flows remain the key factor in speculation on Thai equities, supporting demand for derivative warrants, especially SET50 Call and Put DWs, both for speculation and risk hedging.

KGI also highlighted its strengths in liquidity management and its “Localized Standard” concept, which is designed to meet the needs of Thai investors.

In 2026, KGI aims to issue more than 1,100 DWs, setting a new record, while expanding its investor base and supporting a wider range of trading strategies.

The Thai stock market started this year strongly, with the SET Index rising to around 1,500 points and delivering returns in the range of about 15% to 20%.

However, the key support in the early part of the year came from expectations that the US Federal Reserve would move towards cutting interest rates. More recently, conflict in the Middle East and rising oil prices have had a direct impact on inflation, limiting the chances of interest-rate cuts this year. As a result, the Thai stock market is likely to remain around the 1,500-point level for some time.

Mr Jenvit Chinkulkitniwat, Managing Director, Equity Derivatives Department, KGI Securities (Thailand) Public Company Limited, or KGI, said: “In this kind of market environment, investors should give more weight to analysing the direction of fund flows than to domestic fundamentals, as the slowdown in the Thai economy has already been reflected in the low P/E level for several years.

“Capital movement between markets remains the key factor. The Thai stock market has a P/E of around 17 times, compared with the US stock market at 25–30 times. Although overseas technology stocks remain a magnet for global investment, in an environment where interest rates remain high alongside inflation, even slightly negative news can trigger heavy selling.

“This can cause some capital to flow back into lower-risk markets, and the Thai stock market is one of the options, supported by its low P/E level and attractive dividend yield.”

Speculation on Thai stocks in line with fund flows since the beginning of the year has driven continued growth in trading through derivative warrants, especially DWs linked to large-cap stocks and the SET50 issued by KGI under the “DW13” brand.

This has pushed KGI DW13’s market share in Thai equities to 70%, the highest level on record.

In terms of investor strategy, KGI found that when the index rises close to the 1,500-point level, investors often use SET50 Put DWs to hedge their stock portfolios, effectively acting as a “shield” for their investment portfolios.

When the market moves within a sideways range, investors tend to trade alternately between SET50 Call DWs and Put DWs within the same day, while setting end-of-day stop-loss points to manage risk.

KGI has also begun to see a new group of investors adopting more aggressive investment strategies, or “Beyond Buy & Hold”. These investors choose DWs with very high gearing, or extreme leverage, on individual stocks that have corrected deeply but are beginning to show signs of returning trading volume and the potential for a strong rebound.

Although such strategies involve high risk, they also offer the opportunity to generate high returns.

Jenvit added that another key factor supporting KGI DW13’s market share and popularity is its efficiency in liquidity management, particularly during periods of severe market swings and crisis-level volatility.

One example was the Middle East tension in early March, when KGI’s team and computer systems were able to manage prices and liquidity continuously, clearly strengthening investor confidence.

Over the past 17 years, KGI DW13 has focused on the concept of “Localized Standard”, or developing products and systems that match the behaviour of Thai investors, rather than relying solely on international standards.

Examples include the development and establishment of the Thaiwarrant.com website, the creation of standard DW price tables, and the continuous issuance of new DW series.

These efforts have made KGI DW13 a genuine standard-setter for Thailand’s DW industry.

For 2026, KGI DW13 aims to set a new record by issuing more than 1,100 DWs for the first time in its history. This is intended to support market-share growth and expand its investor base as trading strategies become more diverse, including ultra-high-gearing DWs and long-dated DWs.

“We remain confident that KGI DW13 will be able to maintain its market leadership continuously, while playing an important role in raising industry standards and supporting the development of new financial products in the future, in line with the framework permitted by regulators,” Jenvit added.

More details are available at www.thaiwarrant.com.