Thai Bourse Announces Key Developments In First 9 Months - Average Daily Securities Trading Volume At THB 30.60 Bln - Derivatives Trading Volume At 44,178 Contracts/Day - To Begin New SET50 Futures, SET50 Options, And Sector Futures From Oct 29th

The Stock Exchange of Thailand (SET) announces that the overall performance in the first nine months was on track, particularly for key developments, several of which were successfully rolled out in the third quarter, including its new securities trading engine, SET CONNECT, while the main SET index rose to be Asia’s best performance, and market capitalization of both SET and the Market for Alternative Investment (mai) reached all-time highs. These developments underline the attractiveness of the Thai capital market and economy.
 
SET President Charamporn Jotikasthira said the third quarter showcased several SET key milestones, with the launch of SET CONNECT offering faster-than-ever platform performance and features meeting global standards, and SET successfully working closely with 32 brokers to cope with increasing trading volume and new financial products. In addition, on October 15, SET connected with Bursa Malaysia Berhad and Singapore Exchange through the ASEAN Trading Link, marking a historic first in making trading in the region faster and more convenient and attracting more investors to the Thai stock market.
 
“Although stock markets across the globe have been dampened by U.S. and European economic woes, SET has gone against the tide and showed upbeat performance, supported by increasing liquidity of the global capital market, Thailand’s economic growth, and the high dividend yields of listed companies in SET and mai made possible by their strong and sustainable profits. We also made records in several aspects, including the SET index, which has risen to be Asia’s top performer, while market capitalization surged to an all-time high,” Charamporn said.
 
“Moreover, Thailand’s capital market has been upgraded to be the third best in Asia in corporate governance, stepping up from fourth place in 2010, thus boosting investor confidence in the Thai capital market and its listed companies,” Charamporn said, adding that Corporate Governance Watch Asia ranks the capital markets of 11 countries in Asia-Pacific.
 
In addition, amending SET rules to facilitate the listing of holding companies whose main business is abroad, effective from September 1, is bearing fruit, with CK Power Limited, a holding firm, preparing to list on SET and with two or three other such companies going through the submission process.
 
In the first nine months, combined average daily turnover of SET and mai was at THB 30.60 billion, putting it in the region’s top ranks, while average derivatives trading volume was at 44,178 contracts per day and January-September derivatives volumes were at 7,727,239 contracts.
 
In terms of new listings, in the first nine months, nine companies and five property funds became listed on SET and mai, with a total of THB60.85 billion in market capitalization from these newcomers. October alone saw two new listings and another 12 companies submitting filings for listing; of the latter, four sought to list on SET and eight on mai. In addition, 132 listed companies raised a total of THB 81.98 billion in the first nine months, while the most popular fundraising tool via the capital market among listed companies was stock dividends.     
 
For new product launches, Thailand Futures Exchange (TFEX) will launch new versions of SET50 Index Futures and SET50 Index Options, and introduce Sector Index Futures on October 29, 2012, in order to provide more choices for investors and boost market liquidity. There will be 5 major sector index futures, which are Banking (BANK), Information & Communication Technology (ICT), Energy & Utilities (Energy), Food & Beverage (Food), and Commerce (COMM). These five sectors account for 67 percent of the combined market  capitalization of the Thai stock market.
 
SET continued to serve institutional investors in the third quarter by hosting Thailand Focus  for the sixth consecutive year. This major event attracted a historic number of international participants and was the first time that other Indochinese capital markets joined in the activities. In addition, SET held overseas roadshows with cooperation with companies high in investor interest. Apart from regular trips to global financial hubs, such as Hong Kong, Japan, Singapore, the United Kingdom, and the United States, SET sought out new potential investors, including in Canada and China.
 
To increase retail investor participation, SET has been organizing marketing promotions in close cooperation with commercial banks and securities firms. These efforts have resulted in retail accounts rising by 63,149 accounts to a total of 763,374 so far this year, higher than the 2012 target of 740,000-750,000 for the entire year. Meanwhile, derivatives accounts rose by 13,757 to 74,057 so far this year; and consequently, SET expects to reach its target of 80,000 accounts by the end of 2012. Online trading has increased to account for 52.50 percent of the total trading value from retail investors.
 
Also, SET has continued to develop post-trade services, aiming at providing a full range of services for the capital market, including implementing PTI Direct Connect to cope with straight-through processing from September 24, thus reducing working processes. SET now  offers third party clearing services, beginning from October 1. In addition, SET has set up a lending pool for securities borrowing and lending, and Thailand’s Securities Depository will act as principal for borrowers and lenders when trading is matched. Establishing this lending pool is subject to Securities and Exchange Commission approval and is expected to initially provide service for SET50 Index components in the first quarter of 2013.
 
SET has also placed emphasis on long-term capital market development, including (1) Enhancing listed companies by offering workshops and advice that help them to follow ESG (Environment, Social, Governance) standards that increase their strength and capabilities for sustainable growth; (2) Upgrading investment literacy for investors and professionals, which are: (2.1) The Saving in Stocks program for new investors, with 7,551 applicants joining in the activity, (2.2) Employee’s Choice@Workplaces, to provide financial plans for retirees, with 6,840 persons signing up, and: (2.3) The New Investment Consultant program, with NIC@Brokers developing the financial literacy of new investment consultants and efficiently upgrading the  quality of existing professionals.
 
For youth development, SET has been long committed to matching opportunities for young generations by holding key events, including: (1) The Diamond Crown in Economics event to promote learning how to saving and personal financial management, with this year gaining an all-time high of 4,039 students from 947 schools, ranging from junior primary through high school levels nationwide and: (2) The Young Financial Star Competition for university students, preparing the new generation to enter into the capital market and attracting an all-time high of 5,688 contestants; the event has been held for the last ten years.     
 
SET Executive Vice President Veerathai Santiprabhob attributed the upbeat SET index in the third quarter to the strong profitability of Thai listed companies and fund inflows caused by surplus liquidity in the global capital market.
 
At the end of September, the SET index closed at 1,298.79 points, up 26.67 percent from the end of last year, and rising by 5.81 percent from August. Market capitalization of SET rose 28.61 percent to an all-time high of THB 10.78 trillion, while mai’s market valuation was at THB 104.73 billion, up 35.47 percent from last year. The SET dividend yield was at 3.45 percent and mai dividend yield was at 2.02 percent. The forward P/E ratio of SET was 13.87 times, higher than 11.59 a year earlier, while mai’s forward P/E ratio rose to 13.26 times.
 
Third-quarter average trading volume of SET and mai was at a combined THB 31.20 billion, up 6.66 percent from the previous quarter, but down 5.11 percent from a year earlier. Foreign investors were net buyers in the first nine months, purchasing a net THB 65.78 billion, accounting for 23.93 percent of total trading volume, up from 22.78 percent a year ago.