Thai Bourse Market Report For August 2013

Daily average trading value down 13 pct month-on-month to USD1.29 bln
Market cap at THB 11.29 trillion, down 4.6 pct from end-2012
Derivatives trading falls slightly at 54,065 contracts per day

The Stock Exchange of Thailand's (SET) securities trading value in August decreased from the previous month, following the SET index slump hit by concerns that the U.S. Federal Reserve would start to wind down its stimulus program and by China’s slowing economic outlook. Thailand’s 2013 economic growth was expected to be lower than previously forecast, also weighing down market sentiment.

The SET main index ended August at 1,294.30 points, down 9.05 percent from July, and down 7.01 percent from the end of last year. Foreign investors accounted for total net sales of USD 3.77 billion in the first eight months.

Combined average daily trading value of SET and Market for Alternative Investment (mai) was at THB 40 billion (approx. USD 1.29 billion), down 12.93 percent from July, but up 36.23 percent from a year earlier. In the first eight months, average trading value expanded 90 percent to THB 56.72 billion from a year earlier.

Daily trading volume of derivatives rose 28.61 percent from a year ago at 54,065 contracts per day, but down slightly from the past month.

Key highlights for August

Securities

-      Market capitalization of SET was at THB 11.29 trillion (USD 364 billion), down 4.06 percent from the end of last year and down 8.64 percent from July, while market valuation of mai was at THB 153 billion (USD 4.94 billion), up 15.02 percent from the end of 2012, but down 14.42 percent from the previous month.

-      Forward P/E ratio for SET was at 12.57 times, lower than an average forward P/E of 13.08 times in the region. mai's forward P/E ratio was at 14.33 times.

-      Dividend yields of SET rose to 3.36 percent, higher than the average 2.88 percent in the region. mai’s dividend yield was at 1.98 percent.

-      Foreign investors were net sellers in August, selling a net USD 1.26 billion. Since the start of this year, they have sold a net USD 3.77 billion, similar to in the region’s other markets, such as Indonesia and South Korea.

-      In August, trading value from all type of investors reduced from July. The trading proportions from foreign investors and securities companies were higher from July, while the proportion from domestic retail investors dropped to 48.18 percent of total trading value, its lowest proportion in 76 months (since May 2007).

-      Listed companies raised funds through equity worth a combined THB 17.52 billion (USD 565 million) in August. Of that, THB 13.43 million (USD 433 million) was from initial public offerings, and THB 4.09 billion (USD 132 million) was from secondary equity offerings. In the first eight months of this year, a total of THB 203.57 billion (USD 6.57 billion) was raised through the Thai stock market, up 175.78 percent from a year earlier.

Derivatives
-      Derivatives trading volume fell slightly from a month earlier to an average of 54,065 contracts per day, but up 28.61 percent from a year earlier. In the first eight months, average daily trading volume was at 72,409 contracts, up 65.23 percent from a year earlier.
-      Night session trading accounted for 44.31 percent of total trading volume, down from 45.37 percent in July. In January-August, night session trading accounted for 50.13 percent of the total.

For more information, please visit www.set.or.th