SET HOPES TO MATCH INVESTORS' STRENGTHS

The Nation - 19 January 2012
SIRIPORN CHANJINDAMANEE

Because of the financial problems in the United States and the euro zone, the Stock Exchange of Thailand's president looks forward to empowering businesses and investors to match their own strengths with the right financial opportunities.

Charamporn Chotikasatien said the SET predicted trading volatility in the first half of the year. It also forecasts that capital investment in emerging markets will drop or stand pat because the injection of money by central banks in the US and the European Union may not enhance their economies as much as during the crisis in 2008. As a result, financial institutions around the globe will continue de-leveraging investment, which will directly affect the world's cash flow.

However, it is predicted that the EU will come up with clearer policies to ease its member nations' debts in the second half.

On the equities side, the market-capitalisation target is Bt120 billion this year. In addition, the bourse will encourage listed companies to raise more capital. The SET will support the establishment of an infrastructure fund and a real-estate investment trust as well as relaxing regulations to allow more multinational and holding companies to list on the Thai exchange.

The SET also targets 740,000-750,000 trading accounts this year compared with 680,000 accounts currently, while derivative accounts reach 80,000.

"We plan to expand the customer base and investment of institutionωωω in every country as well as the expansion of croporate investor to use more derivatives in their business risk management," said Charamporn.

He said the bourse would support the expanded use of derivatives by corporate investors in their business risk management.

Total trading value is forecast to average Bt31 billion to Bt32 billion per day compared with Bt28 billion last year. Trading via the Thailand Futures Exchange should achieve 55,000-57,000 contracts per day compared with 41,000 contracts in 2011.

Charamporn said the SET would also launch new products such as Thai Depository Receipts and currency futures as well as new products in SET50 and gold futures.