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The overview performance of the Thai capital market in 2010 improved year-on-year, whether in terms of indices, market capitalization, or trading value. The Stock Exchange of Thailand’s SET Index closed 2010 at 1,032.76, up 40.60% from end-2009 and the second biggest rise in Asia. Total market capitalization from both SET and Market for Alternative Investment (mai) as of November 8, 2010 hit an all-time high at THB8.56 trillion (approx. USD280.20 billion). The year 2010 saw a new record high in daily average trading value of SET and mai combined of THB29.06 billion (approx. USD 950.49 million), a year-on-year increase of 59.47%. Other all-time highs include internet-based trading reaching 24.56% of total trading by value, and daily average derivatives trading volume reaching 18,676 contracts.
In 2010, the number of transactions on the SET represented a very high increase. Even though trading was limited during the first five months of the year due to local political problems, local investor confidence and foreign fund flows into Thai and other regional stock markets in the second half of 2010 making Thai Exchange’s index rise 40.60%, which was second highest in Asia (the Indonesian index rose 46.13%). Thai sectoral stock indices also improved in 2010 over their 2009 performances, particularly the Industrials, Agro & Food Industry and Services, whose gains outpaced the SET Index. In addition, the forward P/E ratio of the SET at end-December 2010 increased to 14.55 times from end-2009, while the mai index closed at 272.79 points at end- 2010, or a 26.70% y-o-y rise.
At end-2010, the SET’s market capitalization was at THB8.33 trillion (approx. USD272.55 billion), a 41.91% y-o-y rise, while the mai market capitalization was THB55.12 billion (approx. USD1.80 billion), a 40.88% y-o-y increase. As a result, the ratio of the market cap to GDP went up from 65.40% at the end of 2009 to 86.48%.
In 2010, average daily turnover at SET and mai was at THB29.06 billion (approx. USD950.49 million), a 59.47% y-o-y rise, which is the highest since the Thai stock market opened 35 years ago. Foreign investors were net buyers of THB81.41 billion (approx. USD2.66 billion).
The derivatives market has recorded a daily trade average of 18,676 contracts in 2010, the highest record since its opening. From 2006, where Thailand Futures Exchange was established, to 2010, the market’s Compound Annual Growth Rate (CAGR) was 98.46%.
THB90.35 billion (approx. USD2.95 billion) was raised in 2010, or 156.82% higher than in 2009. This included IPOs worth THB11.61 billion (approx. USD379.60 million) from 11 new firms, excluding BTS Group Holding PLC, which was a reverse takeover, and 4 property funds. The statistics showed a decline in the number of IPOs from 17 new companies and 5 property funds in 2009. However, funds raised from IPO in 2010 were higher than in 2009 and pushing market capitalization to THB97.91 billion (approx. USD3.20 billion). Seasonal equity offerings on both SET and mai were worth THB77.77 billion (approx. USD2.54 billion), a 243% y-o-y rise. The Industry group that has raised the most funds was the Property & Construction group.
In 2010, 390 listed companies, or 76% of all listed firms, saw their share prices go up. The SET51-100 has offered the average capital gain of 78%, which is the highest when compared with other groups. Moreover, higher stock prices have helped lower the number of companies with a P/BV of lower than one, to fall from 258 in 2009 to 189.
In December 2010, average daily turnover at SET and mai as of December 31, 2010, fell 23.99% from the preceding month. This is similar to the derivatives market, which average daily trade value dropped 14.70% from November 2010. However, the SET Index increased 2.75% in December 2010 from a month earlier.
