The Chairwoman of the Executive Committee of Capital Market Opportunity Center (CMOC) and Market for Alternative Investment (MAI), Ms. Sopowadee Lertmanaschai, revealed that the SET will be giving 6.5 million baht in financial support to the "Quality New Analyst Development Project" and "Securities Research Support Project" in order to continually contribute quality analysts and quality research to the capital markets.
The SET, by the working committee on securities research support, in conjunction with the Securities Analysts Association (SAA), held the "Quality New Analyst Development Project" to increase the quantity and quality of the personnel in securities research field, to enhance their analysis capabilities as well as to establish standards and operational ethics in the industry.
"The project will not only increase the number of quality personnel in securities research, but will also establish standards and boost the quality of the securities analysis. Securities analysis is a basic service that securities companies provide their customers to support investment making decisions. Quality information will therefore help enlarge the investors' base and stimulate more long-term investment, all of which is in line with the SET's policy of developing the Thai capital markets," the Chairwoman said.
The "Quality New Analyst Development Project" workshop will be from July 26- September 6, 2003, every Saturday and Sunday for a total of eight days, six hours a day. The workshop will focus on practical training and stimulating active discussion among senior analysts and the trainees. The course outline includes fundamental knowledge about the capital markets, securities trading regulations, roles of securities analysts in the Thai capital markets, accessing information, industry and company analysis, financial ratio analysis, stock evaluation, how to give advice and gather information, how to customize report presentations according to the users' needs, critical research examination, investment instruments, analysts' ethics, and the Thai capital markets development plan. The training will have distinguished guests from the business community and trainers from supervising organization.
Financial support will be granted via the "Securities Research Support Project" to securities companies interested and ready to produce quality securities research on industrial sectors. There are currently 12 participating companies that produce research reports covering additional 70 from the existing 200 plus securities.
"In granting financial aid to securities companies, the SET would like to equip investors with securities research that covers a wider range of moderately capitalized and liquid securities. This is designed to help them make investment decisions when purchasing securities listed on the SET and MAI. Presently most securities companies only provide research reports on only selective highly capitalized and liquid shares," Ms. Sopawadee said.
These analysis reports will be in the format of a full research report containing financial modeling, views toward operational performance, full-year performance forecasts, strengths and weaknesses analysis, optimum stock valuation, executive interviews to access information on future business, investment advice, and follow-up reports. The follow-up reports include a sector view or an outlook update in case there are changes in the information affecting stock valuation.
The CMOC Chairwoman went on to say that: "The securities companies participating in the project will have to produce and submit their reports to the SET by June 30, 2003, and submit follow-up reports at least once every quarter. Investors can then follow and learn from these research reports, the progress and follow-up reports produced by the securities companies from newspapers, SETTRADE Dot Com's website and the SET Library.
