TFEX Managing Director Ms. Kesara Manchusree stated that trading on TFEX has grown steadily since its launch on April 28, with record trading on June 23 (1,425 contracts), while the lowest volume was on the Exchange’s second trading day (53 contracts).
Daily average volume and open interest positions have also been increasing at an average of 301 contracts per day. Total trading value and volume have been THB 5,257.28 million (USD 135.85 million) and 10,824 contracts. Open interest positions stand at 1,901 contracts.
“It is gratifying to see increased trading, especially during the most recent period. Last week 53% of total trading came from retail investors, compared with only 36% during our first week. Investors and TFEX members now appreciate the advantages of futures trading, indicating the effectiveness of our educational programs,” Ms. Kesara said.
The SET50 Index Futures can be used as a risk management tool for investing in the stock market. Futures provide an investment channel which can be utilized during market fluctuations, and require less funds than direct stock market investment. During the past few weeks, global markets underwent a major correction, attracting investors to diversify their portfolios with futures.
“The trading behavior of investors shows that they now have a more sophisticated understanding of the product. Initially trading was most active in issue no. S50M06, which has the shortest maturity (June 29, 2006), but now most activity is in S50U06, which matures in September 2006”, Ms. Kesara added