“Regarding the increasing of demand, or the enlarging of our investor base, currently there are a total of 138,404 active accounts, which is already higher than the targeted of 125,000 accounts for end-2005. The total accounts, as of February 28, 2005, was 415,900, vs. our target of 500,000 accounts at end-2005.”
The average daily trading turnover, as at the end-February 2005, reached THB23.99 bln. (approx. USD600 mln.), or very close to the target of THB24.0 bln. The current daily turnover is also significantly higher than the 2004 average of THB20.51 bln.
Regarding the number of shareholders in the market, our target is 902,300 for end-2005. By end-February, that number had already reached 878,813 and should continue to increase. The number of mutual funds unit holders is also on the rise. At end- 2004, the total number of unit holders reached 837,877, or a 34% year-on-year increase.
Ms. Sopawadee went on to say that for the supply side, the SET’s target is to have 60 new listings this year. As of February 28, 2005, there were a total of 10 new listings, with about 100 firms queued up to apply to gain the 5% corporate tax discount for five consecutive years should they be successful in getting listing approval before December 31, 2005.
“We believe that companies which have already applied should be able to list within this year. Thus we expect the number of listed companies to rise as planned,” Ms. Sopawadee said.
She continued, “While increasing the number listings, the SET will also increase trading liquidity so as to promote securities investments. The listed companies will be encouraged to utilize financial tools to increase the liquidity of their securities e.g., splitting par and paying stock dividends. A system of “liquidity providers” is also under study and discussion amongst related parties. Most importantly, good corporate governance (CG) practiced by our listed companies will be the key to improving the trust and confidence of investors in the Thai capital market. Issues that listed companies should be focusing on include the roles of their stakeholders and responsibilities of their directors. Exclusive workshops for directors will be held to help them meaningfully apply CG principles and guidelines to their organizations and clearly report their companies’ CG developments in their annual reports. During the first quarter this year, the SET’s CG Center has met and given advice to 13 listed companies, as well as encouraged more than 200 directors to participate in the Thai Institute of Directors Association’s (IOD) Director Accreditation Program (DAP).
“In 2005, the SET aims to raise the CG level of listed companies to become more in line with the international standards. The standards for CG assessments will be raised for the SET50 companies, from 65 to 70/100, and, for listed firms in general, from 60 to 65/100,” Ms. Sopawadee said.
The study on current CG levels of listed companies has shown that 85% of them have been able to conform to the fifteen CG principles. The SET’s CG Center has continuously promoted and provided incentives for the companies. Recently the SET offered a 50% discount in its annual listing fee, for two consecutive years, to companies that receive CG ratings of 7 points or higher on a 10 point scale. This promotional privilege has been extended to the end of 2005. Companies applying for by year-end for a CG Rating will be eligible. In addition, the SET will also be granting awards for the Best Corporate Governance Reports to firms which have shown the greatest achievements in implementing CG principles.
