To develop integrated product lines and enlarge the investor base, the SET will focus on providing a full range of products, including equity, debt and derivatives instruments. Investors will therefore have a variety of investment alternatives and risk management tools suitable to each of their individual needs. It is estimated that the average trading turnover of equity products will be approximately THB24 bln. (approx. USD585.4 mln.) per day. New listings are targeted at 100; 60 on the SET and 40 on the Market for Alternative Investment (mai). The combined market capitalization for the SET and mai, at market prices, of the new listings is expected to reach THB300 bln. (approx. USD7.32 bln.). Target industries for new listings include food, automotive, fashion, printing, and electronics. The mai will focus on ‘businesses for the future’, primarily high-growth and innovative businesses.
For bond and derivatives, the SET aims to boost bond trading turnover on the BEX (Bond Electronic Exchange) to be 30% of the total bond trading. The derivatives market, whose first product will be the SET 50 Index Futures, aims for an average 1,000 futures contracts traded per day. There will be extensive investor education on these two types of products.
The SET’s market education will be mainly done through its Money Channel and investment promotion events, e.g., Money Expo, the SET’s local roadshows nationwide, the monthly Investors Day in Bangkok, overseas roadshows and other activities scheduled throughout 2006. The SET expects that over four million youth, professionals and members of the general public will learn and understand more through the SET’s publications, training, e-learning facilities and events.
Furthermore, the SET will continue to develop its system infrastructure to incorporate advancements in information technology and efficiently service the forecasted increases in transactions of each product line. To increase market confidence, the SET will continue to promote good corporate governance (CG) among all listed firms. The SET’s goal to see the CG score of listed companies in the SET100 Index increased to 80% and those in the SET50 Index raised to 85%. Regarding social activities, the SET will focus on community and social development projects, especially for Thailand’s youth and less-privileged people. The SET intends to play a leading role in developing society and be a role model for other organizations.
Details of the SET’s five areas of focus in its 2006 business plan are:
- Developing integrated product lines and enlarging the investor base
In addition to setting a goal of 100 new listings for 2006, on the investor side, the SET targets to increase the total number of trading accounts to 570,000, with 160,000 being active. The number of total shareholders is expected to reach 1,100,500, including 806,000 holders of mutual fund units.
In the bond market, 2006 will see about 12 active bond brokers, 10 bond dealers, and 10 institutional investors trading on the BEX. About 300 BEX trading system terminals will be installed next year. Approximately 50% of all corporate bonds in the country, whether by value or number of issues, will be listed on the BEX.
For futures, the target is a daily average trading of 1,000 contracts. The first products will be the SET50 Index Futures and an interest rate–based instrument. It is expected that there will be about 3,000 derivatives trading accounts opened.
- Education and information dissemination
The SET will continue to emphasize laying a firm foundation in investing for Thailand’s youth and the general public. In 2006 the SET will hold educational activities for the four main target audiences: primary and high school students, college students, the general public, and securities professionals. The SET’s educational programs and activities should reach about four million people.
- Infrastructure improvement
The SET will develop its infrastructure in line with expected technological advancements and to better serve the expected increases in transactions in every market. Focus will be on trading and all supporting systems for equity, debt, and derivatives products. The SET’s computer back-up center will be a modern and secure center with international standards able to handle the increasing number of transactions in 2006 and beyond.
- Building market confidence
The SET aims to increase the overall CG score of all listed companies to 75%. In addition, all systems will be developed to keep pace with future developments so as to attain the trust and confidence of all related parties.
- Social responsibility
On social responsibility, the SET will emphasize projects that the host organizations will be able to further carry on to improve the quality of Thai life. For Thailand’s youth, projects relating to education, sports, the drug problem and the less privileged will be given special attention.
