- Q1 avg trading volume keeps at 56,000 contracts despite uncertainties
- To raise trading margins ahead of Thai new year holidays
- To launch mini SET50 futures on May 6
Thailand Futures Exchange PCL (TFEX), under The Stock Exchange of Thailand (SET) group, announces that its first-quarter average daily trading volume was at 56,415 contracts per day, similar to the last quarter of 2013, mainly driven up by stock futures as the product could help boost returns when the market was on the uptrend, and manage risk amid domestic political uncertainties.
TFEX Managing Director Kesara Manchusree said trading volume in the January-March period remained strong with a total of 3,497,752 contracts, or 56,415 contracts per day, close to the fourth quarter of 2013. The average trading value was THB 18.93 billion baht per day. Most of the volume came from single stock futures with an average daily trading volume of 30,744 contracts, or 54 percent of the total volume. It has been popular among investors especially during the uptrend market as this instrument helps boost returns and at the same time be used for risk management during times of domestic political uncertainties.
The SET50 futures’s average daily trading volume was at 18,630 contracts, up 3.73 percent from the previous quarter, while gold futures was at 6,139 contracts per day, down 1.34 percent from the last quarter. On March 28, TFEX made its one-day highest trading volume at 174,804 contracts, reflecting ample demand of Thai stocks. Most derivatives trading investors were retail investors, accounting for 54.9 percent, while institutional investors representing 37.3 percent and foreign investors 7.8 percent.
Given the upcoming long national holidays in April, Thailand Clearing House Co., Ltd. (TCH) will temporarily impose additional margins, so-called Super Margin, for 50 Baht gold futures, 10 Baht gold futures, oil, silver, and USD futures ahead of the Songkarn holidays, effective on April 10, to cope with risks from price volatility that may occur when TFEX closed for a holiday during April 12-15, while the foreign markets remain open. However, the margins will be back to normal on April 16.
The mini SET50 futures will be launched on May 6th. It reduces the existing SET50 futures to be one-fifth and all open positions prior to the launch date will be automatically increased by five times. Margins and exchange fees will also be reduced proportionally to one-fifth as well.
TFEX continue to arrange workshops and add more training for investors with a TV program called “TFEX station” on SET’s Money Channel under the concept “Easy-Happy-Study”. An intensive training program continuing from last year called TFEX Challenge Academy will also be held throughout the year. Lastly, TFEX Open House, a joint program between TFEX and many leading brokers aiming at educating investors of all levels will also continue to take place during the year.
