In May 2010, The Stock Exchange of Thailand (SET) Index was rather volatile and closed at 750.43, a 1.71% drop from the previous month due to concerns over Europe’s public debt crisis and domestic political unrest. However, the drop in the SET Index was small compared to regional markets, and was still 2.16% higher than the SET Index at end-2009. Market capitalization was at THB 6.09 trillion (USD 0.19 trillion), down in line with the SET Index's decline.
The combined average daily turnover for the SET and the Market for Alternative Investment (mai) was THB 23.91 billion (USD 0.73 billion), a 4.10% drop from April 2010, but still high compared to the comparative figures for all of 2009 and of January-May 2010. Foreign investors were net sellers, with a net sell position of THB 58.79 billion, the second consecutive month that they were net sellers. On the other hand, local institutions and local investors were net buyers in May 2010. In terms of trading value by market capitalization, some investment reallocated from large-cap firms to middle-cap and small-cap companies.
For derivatives, the May 2010 daily average trading volume was 18,536 contracts, down 4.59% from April 2010 due mainly to the smaller volume of SET50 Index futures and single stock futures. Average trading volume for gold futures was 3,283 contracts, up 32.22% over April 2010 due to an increase in gold price.
In terms of funds raised, listed companies raised equity of THB 20.19 billion (USD 0.62 billion), consisting of initial public offering (IPO) of Teera-Mongkol Industry PCL (TMI) at THB 80 million (USD 2.47 million), Cyberplanet Interactive PCL (CYBER) at THB 140 million (USD 4.32 million), seasonal equity offerings at THB 19.97 billion (USD 0.62 billion), mainly from BTS Group Holdings PCL (BTS). Fund raising in the first five month of 2010 totaled THB 31.11 billion (USD 0.96 billion), up 1.54 times compared to the same period of 2009.
Performance OverviewIn May 2010, the SET Index was rather volatile and closed at 750.43, a 1.71% drop from the previous month and in line with regional markets. The decline was due to concerns over Europe’s public debt crisis, as it could affect Euro stability and global recovery, and could cause foreign investors to reduce share holdings in emerging markets. There was also concern about domestic political unrest. However, the index decline at SET was less at than other regional exchanges and 2.16% higher than the Index at end-2009, showing the strong fundamentals of the Thai economy and listed firms.
The mai index closed at 207.63, up 1.22% over April 2010. Having only a small portion of foreign investors in mai, its Index was not affected much by the net sell position of foreigners.
The decline in the SET Index resulted in a drop in the forward P/E ratio to 11.03 times, down from 11.30 times in April 2010. The Thai bourse’s dividend yield was still higher than those of other regional markets at 4.17%, while combined market capitalization of SET and mai was at THB 6.09 trillion (USD 0.19 trillion), down in line with the SET Index's decline.
Trading Activity
In May 2010, average daily turnover was a 4.10% drop from April 2010, but still at a high level vis-a-vis 2009’s comparable figure. The total trading for SET and mai combined reached THB 382.62 billion (USD 11.80 billion), with a daily average turnover of THB 23.91 billion (USD 0.74 billion). Average January-May 2010 daily turnover was at THB 21.31 billion (USD 0.66 billion), higher than 2009’s average daily turnover at THB 18.23 billion (USD 0.56 billion).
In terms of trading value by customer type, foreign investors had net sales of THB 58.79 billion (USD 1.81 billion) in May 2010, the second consecutive month of being net sellers. Therefore, during January-May 2010, foreigners changed from being net buyers to becoming net sellers, with net sales of THB 20.41 billion (USD 0.63 billion) for those five months. In May, local investors had a net buy position of THB 48.16 billion (USD 1.49 billion), this group’s second consecutive month of being net buyers. Local institutions had net buys of THB 10.73 billion (USD 0.33 billion), while proprietary traders had net sales of THB 96.13 million (USD 2.96 million). In May, the foreigners’ share of all trading increased to 25.21% of total trading value - the highest in 14 months, up from 24.58% in April.
In terms of trading value by industry group in May 2010, the proportions of the Banking, and Information & Communication Technology Sectors decreased to 23.02% and 3.46%, respectively, compared to April 2010. The proportion of the Food and Beverage Sector dramatically increased to 9.02% from 4.49% in April 2010, due mainly to more trading in Charoen Pokphand Foods (CPF).
In terms of trading value by market capitalization, trading moved from large-cap companies to middle- and small-cap firms when compared to April 2010 figures. The top-ten securities (in terms of market capitalization) accounted for 42.42% of total trades, down slightly from 45.88% in April, while the proportion of smaller capitalization companies, especially Non-SET50 firms, increased.
Active Trading Accounts
In April 2010, the number of trading accounts dropped to 137,309 accounts, down 6.24% from the previous month. The active rate was 23.76% and average trading value was THB 3.27 million (USD 0.10 million) per account, down from 25.70% and THB 3.75 million (USD 0.12 million) in March.
The total of active Internet accounts was 52,598 accounts, down from March. April's internet trading value was THB 88.27 billion (USD 2.72 billion), a 25.46% drop from March 2010; however, it was up 61% y-o-y. In April, internet trading value accounted for 19.67% of total trading value – the lowest in 12 months, down from 21.57% in March.
Overview of the Derivatives Market
In May 2010, average daily derivatives trading volume was 18,536 contracts, down 4.59% from April's figures due mainly to declines in trading of SET50 Index futures and single stock futures, which were down 11.48% and 7.29%, respectively. However, average trading volume for gold futures reached 3,283 contracts – the highest in the past three months (March-May), and up 32.22% over April, due to an increase in gold price.
Overview of funds raised
In May 2010, listed companies raised equity of THB 20.19 billion (USD 0.62 billion), a dramatic increase compared to THB 190.03 million (USD 5.86 million) in May 2009. The funds raised included seasonal equity offerings of THB 19.97 billion (USD 0.62 billion), mainly from BTS Group Holdings PCL (BTS) at THB 19.38 billion, and initial public offerings of Cyberplanet Interactive PCL (CYBER) of THB 140 million (USD 4.32 million) and Teera-Mongkol Industry PCL (TMI) of THB 80 million (USD 2.47 million). Fundraising in the first five months of 2010 totaled THB 31.11 billion (USD 0.96 billion), up 1.54 times vis-à-vis the same period of 2009, mainly due to fundraising of firms with large market capitalization, especially Indorama Ventures PCL (IVL) and BTS Group Holdings PCL (BTS).