Thai Bourse Market Report For 2011

Daily average trading volume at USD 921 mln, the second highest in SE Asia
2011 share turnover velocity hits highest in the region
SET Index down 0.72 pct, still outperforming other emerging markets
Derivatives trading hits record high, up 120 pct in 2011

The Stock Exchange of Thailand’s (SET) 2011 trading volumes rose 1.40 percent from a year earlier. Although Thailand’s floods, Japan’s earthquake and risks from European debt and U.S. economy dragged down market sentiment, the country’s national election helped boosting investment mood.

The SET gained the top share turnover velocity in Southeast Asia and its daily average securities trading volume ranked the second highest in the region, behind Singapore.

The SET index outperformed some other markets in the region last year. It fell 0.72 percent from a year earlier, while MSCI Emerging Markets dropped 20.41 percent in 2011. Market capitalization of the SET was at THB 8.41 trillion (USD 263 billion), up 0.88 percent from the end of 2010.

Combined average daily trading volume of the SET and the Market for Alternative Investment (mai) was at THB 29.47 billion (approx. USD 921 million), while daily trading volume of derivatives was up 120 percent from a year ago at a record high of 41,145 contracts per day.

Key highlights for 2011

Securities

Market capitalization was at THB 8.41 trillion (USD 263 billion), up 0.88 percent from 2010, and market valuation of the mai was at THB 77.31 billion (USD 2.42 billion), up 40.24 percent from the previous year.
The SET Index hit a 15-year high of 1,144.14 points on August 1, 2011, when its market capitalization of SET marked a record high of THB 9.36 trillion and mai also had an all-time high of market valuation of THB 86.08 billion. The main index ended 2011 down 0.72 percent at 1,025.32 points.
Combined average daily trading volume of SET and mai was at THB 29.47 billion, up 1.40 percent from a year ago. In December, trading volume fell 31.89 percent to THB 21.88 billion per day from a year earlier.
Forward P/E ratio for the SET was at 12.30 times, down from 14.70 a year ago, while mai’s forward P/E ratio eased to 9.40 times from 10.62 in the previous year.
Dividend yield of the SET was at 4.30 percent at end-2011, up from 3.56 percent at end-2010, and mai’s dividend yield was at 2.57 percent.
Foreign investors were net sellers worth a net USD 167 million in 2011. They accounted for 22.78 percent of the total trading volume in 2011, highest over the last three years.
Listed companies raised funds through equity worth a combined THB 82.52 billion in 2011, down 8.85 percent from a year earlier. Of the number, THB 18.46 billion was raised via initial public offerings, and THB 64.06 billion through the secondary market.
Eight exchange-traded funds (ETFs) listed on the exchange have a combined net assets value of THB 5.62 billion, up 89.51 percent from a year earlier. Of the number, five ETFs were newly-listed in 2011.

Derivatives

Derivatives trading volume surged to 10 million contracts, or an average of 41,145 contracts per day, up 120 percent from a year earlier, supported by rising trading of gold futures and the launch of night trading session.
Since silver futures was launched in June, it had daily average trading volume of 236 contracts, while oil futures, which started trading in October, had daily average trading volume of 64 contracts.
Trading volume of commodities futures (which are for gold, silver and crude oil) in the night session, launched in June, accounted for 40.03 percent of the total trading volume of these products.