.jpg)
The Stock Exchange of Thailand (SET) has revealed its achievements in the first half with the returns and liquidity reaching number one in ASEAN. Despite the global market volatility, foreign investors bought net in Thai stocks at THB 35.98 billion (USD 1.02 billion), considered highest in ASEAN. SET also forecast a robust initial public offering (IPO) in the second half and plan to introduce “sSET Index” which represents the price movement of the mid and small common stocks as well as “TFEX Gold-D,” an electronic gold futures trading with physical delivery. On top of this, SET will launch new website to create social impact synergy connecting business and society.
SET President Kesara Manchusree stated that SET’s remarkable success showcased many aspects in H1 covering (1) SET Index rose to 1,444.99 points with 12.2 percent growth year-to-date, or 15.2 percent growth (in USD-term), highest growth in ASEAN. (2) Foreign investors have become net buyers in Thai stocks, compared to 2015. They bought net in Thai stocks in H1 at THB 35.98 billion (USD 1.02 billion), considered highest in ASEAN, and their inflows tended to continue. (3) SET has maintained its position as the most liquid market in the region with the average daily trading value at THB 46.67 billion (approx. USD 1.33 billion), the highest in ASEAN since 2012, while the combined market capitalization of SET and Market for Alternative Investment (mai) was at THB 14.1 trillion (USD 400.57 billion), a 12.1 percent increase from the end of last year, underpinned by improved performance of Thai listed firms compared to peers in the region as well as the strong GDP growth in the first quarter hitting a three-year high at 3.2 percent, beating 2015’s at 2.8 percent.
The Thai bourse aims to boost 2016 market capitalization by THB 525 billion stemming from IPOs and fundraising of existing listed companies. In H1, the market cap was increased by THB 152 billion. SET also expects H2 will be drew more newly listed companies as there is a number of firms filing their IPO plans to the stock regulator and to be listed in H2. In addition, SET has launched the start-ups web portal (http:new.set.or.th) in H1, which connects start-ups with investors for fundraising purpose together with government agencies and other start-ups, enable them to exchange information, knowhow, etc. more effectively. In H2, SET will also introduce “sSET Index” which represents the price movement of the common stocks meeting the set criteria apart from the existing “SET50” and “SET100” indices. The “sSET Index” is scheduled to officially launch by the beginning of 2017.
Moreover, three Thai stocks were added to MSCI Thailand Standard Index in H1. As such the total number of Thai listed companies in the indices has now reached 32, highest addition in ASEAN. Recently, 30 Thai listed companies have been selected into the FTSE4Good ASEAN 5 Index, out of total 78 companies in ASEAN, considered the highest number addition in ASEAN. The index’s constituents have been selected and screened in accordance with transparent and environmental, social and governance criteria. In addition, SET will also announce the "Thailand Sustainable Investment" (THSI) list of Thai listed companies with prime performance on ESG aspects in the fourth quarter for second consecutive year, selected from 87 listed firms entering the assessment this year. THSI will be used as quality investment information and decision-making tools for investors
In H1, the derivatives average daily trading volume rose from year-to-date by 16.5 percent to 232,798 contracts. Thailand Futures Exchange (TFEX) has already launched the “RSS3 Futures” and “RSS3D Futures” rubber futures products to serve a variety of investment demands in the market. After appointing three market makers for stock futures and signing a Memorandum of Understanding (MOU) with The Tokyo Commodity Exchange (TOCOM) to establish a cooperative relationship between the two exchanges, TFEX is planning to roll out “TFEX Gold-CD,” an electronic gold futures trading with physical delivery in the second half.
SET has intensively expanded domestic investor base to 1.3 million, 42,587 of new investors were from equity traders, while 5,419 were derivative traders, considerably owing to collaborative synergy with securities firms and commercial banks companies to organize activities in Bangkok and the region, together with new campaign “Invest Now,” to attract retail investors nationwide by using financial technology tool to equip them with knowledge, keeping pace with the digital lifestyle. The Thai bourse is committed to promoting financial and investment education and will continue to expand investment knowledge nationwide via educational projects called “Investor Classroom” and “Ngern Thong Tong Wang Phan” (Money matters need planning), having reached more than 18,000 target groups so far this year. SET also promotes online education successfully reaching over 1.83 million views across the country in the first half of this year. In addition, INVESTORY, the first investment discovery museum in Thailand with digital multi-media learning launched earlier this year, has welcomed more than 22,000 students and general public. SET has also offered a complete range of investment knowledge to more than 1,800 entrepreneurs, start-ups, and capital market professionals through intensive seminars.
To strengthen domestic institutional investors, SET, the Securities and Exchange Commission (the SEC), and alliances in the mutual fund industry consisting of asset management companies, securities firms, commercial banks have joined forces to establish a fund service platform. This platform has operational standards to help broaden distribution of mutual fund products, facilitating investor access to financial services that match their needs while enhancing the capital market’s competitiveness. As for the long-term investor base expansion, SET will further promote provident fund investment for employees' financial sustainability via the popular "Employee's Choice", aiming to enhance financial planning knowledge for happy retirement among employees who have mutual funds or provident funds to help them achieve financial goals in the long run.
To truly build infrastructure for the capital market towards international standards, Thailand Clearing House Co., Ltd. (TCH), a SET subsidiary, has upgraded the risk management measures for the clearing and settlement system, including the securities depository in accordance with the new foreign regulatory standards of the Principle for Financial Market Infrastructure (PFMI). Furthermore, SET has received ISO/IEC 27001:2013 for information security management system and ISO/IEC 20000 for information technology service management. SET has also implemented cutting-edge technology into the operation by launching digital IPO and e-tax services. In H2, SET will set up Digital Counter at Thailand Securities Depository Co., Ltd. (TSD) counter services to facilitate securities deposit, withdrawal and transaction transfer more conveniently.
To strengthen sustainable development in the long run in accordance with the UN Sustainable Stock Exchanges Initiative (UN SSE Initiative), the SET's new environment-friendly head office complex was launched to showcasing world-class design and construction, certified by standards of the Leadership in Energy and Environmental Design (LEED) of the US Green Building Council (USGBC) at GOLD level. In the second half, SET plans to implement “Green Policy” or its sustainability framework for internal operation including procurement and purchasing, and information technology. SET will also introduce the new SET Social Impact website soon. This is considered the first time in Thailand to connect business and social sectors through technology to create social change.
Continuously raising its international profile, after hosting the General Assembly of the Asian and Oceanian Stock Exchanges Federation (AOSEF) in Bangkok, in H1, SET will jointly host two world-class events, reinforcing SET’s key role in the global arena and its internalization mission.The first event is the IR magazine Award, granting prestigious awards to recognize listed firms across the world that perform excellent jobs of investor relations, based on opinion survey among institutional investors. The second event is the Association of National Numbering Agencies (ANNA)’s annual general meeting of ANNA’s members, including depository agencies. In addition, SET will also host the World Federation of Exchanges General Assembly & Annual Meeting in 2017.
