The Stock Exchange of Thailand (SET) has revealed its 2015 plan focusing on improving product and service with quality, growing liquidity, increasing diversification and internationalize product and service, continuously working closely with capital markets in Greater Mekong Subregion (GMS), as well as enhancing infrastructure and capability. It will pave way for a Digital Exchange to accommodate new business and meet future demands, further leading the Thai capital market towards sustainable growth.
In 2014, SET achieved key milestones to become ASEAN’s number one in several aspects, covering (1) average daily trading value rising to THB 44.5 billion (USD 1.35 billion), from January to November, 2015, the highest in ASEAN for three consecutive years (2) MSCI having added three Thai stocks into MSCI Global Standard Indices, the highest number of net additions in ASEAN (3) Dow Jones included ten Thai listed companies in the Dow Jones Sustainability Indices (DJSI), the highest number of additions in ASEAN and (4) the ASEAN CG Scorecard showing that average corporate governance (CG) score of Thai listed companies has topped off all other ASEAN companies. (6) SET joining the UN Sustainable Stock Exchanges (SSE)
initiative, becoming the first exchange in ASEAN to pledge
commitment to the promotion of sustainability within its capital markets.
SET Chairman Sathit Limpongpan stated, “To manage the upcoming internal and external uncertainties, in 2015 we will put the “Digital - Diversified – Sustainable – Internationalized” (DDSI) concept into action by facilitating IT system for all parties in the capital market, expanding investor base, as well as diversifying products and assets to multi-market and multi-asset levels, while developing existing products. SET plans to expand business internationally and enhance stakeholders on sustainable competitiveness by adhering to good corporate governance, contributing to environment and society, in line with SET’s target towards sustainable growth in 2020.”
Meanwhile, SET has been supporting potential firms to participate in the DJSI. Currently, Thai listed companies have been selected to join in the DJSI. In addition, SET has encouraged fund firms to issue a type of fund giving financial yields both financial and environmental returns. SET has geared up to support Social Enterprises running their business with social and environmental considerations as well as being sustainable self-reliant companies. Besides, SET will continue to internationalize its GMS and global businesses to achieve sustainable growth by 2020, Sathit added
SET President Kesara Manchusree viewed that in 2015 Thailand’s economy would recover with higher growth than in 2014, corresponding with the business growth in Mekong sub-region and the upcoming AEC. Therefore, SET aimed to implement the four key elements of 2015 strategy covering:
- Improving product and service quality: In 2015, SET has planned to grow market capitalization from IPOs among industry leaders which are transportation and logistics, tourism, alternative energy, and agriculture and food, as well as adding foreign listing, especially companies in GMS countries. It aims to grow market capitalization from IPOs by THB 250 billion (USD 7.56 billion) and increase fundraising from existing listed securities by THB 130 billion.
- Growing liquidity: SET aims to balance its investors’ portfolio by enhancing knowledge among investors and stakeholders in order to increase mutual fund and provident fund investment. Furthermore, SET plans to develop expertise among investors, market makers and stakeholders in SET and Thailand’s Futures Exchange (TFEX) to increase liquidity, with expectations to boost average daily derivatives trading to 190,000 contracts, expecting average daily trading by THB 52,000 million in 2015.
- Increasing diversification and internationalizing products and services: SET plans to launch USD-denominated products for stock and derivatives transaction to facilitate Thai and foreign investors. In addition, it will continue to conduct securities list of companies in GMS and to develop knowledge and expertise in the region, as well as enhancing collaboration with the global markets to become the forefront of regional capital market.
- Enhancing infrastructure and capacity to meet future requirements: SET will launch new clearing services for equities in 2015 and expand digital listing services (Digital IPOs) covering all products to facilitate investors and stakeholders. SET will improve listed firms’ online information system including corporate action database. It has started conducting feasibility studies to reduce time of clearing and settlement process to two working days from three days.
In line with SET’s mission to strengthen Thai firms’ capabilities and quality towards sustainability, SET will continue to enhance corporate operation on environmental, social and governance (ESG) aspects, conduct and promote firms to run business according to ESG standards. Furthermore, SET will continue to create awareness of ESG practices in the capital market, as well as supporting potential firms to participate in the Dow Jones Sustainability Indices (DJSI). On top of this, it will continue to promote investment knowledge among investors through various projects, such as SET your wealth SET your life, Investor’s Classroom, etc.
“With many initiatives in stock for 2015 and beyond, SET is ready to move into the new head office by the end of next year. The new headquarters has been designed to match the ‘Digital Exchange’ concept, and will be the Thai capital market’s real learning center to enhance investment knowledge and activities for current investors and inspire the new generation investors, as well as facilitating the Thai capital market towards sustainable growth,” Kesara added.