Bangkok--24 Jul--SET
The Stock Exchange of Thailand (SET) has disclosed its strategic plans in the second half of this year, aiming to expand quality investor base, increasingly diversify and internationalize products and services while moving towards digital exchange to support continuous future growth.
The bourse has strongly believed to beat 2015 targets proven by its achievements in the first half with the average daily trading value and the valuation of fundraising of initial public offerings (IPOs) reaching number one in ASEAN. On top of this, the merger between Thailand Futures Exchange pcl (TFEX) and The Agricultural Futures Exchange of Thailand (AFET) has been set to be completed by the end of this year, along with the plan to announce a list of Thai listed companies in "Thailand Sustainable Investment," paving the way for Thai firms to sustainable development.
SET President Kesara Manchusree stated that despite the global market volatility, SET has significantly achieved key milestones and maintained the leading position in ASEAN in the first half of this year with the average daily trading value at THB 47.7 billion (approx. USD 1.4 billion), considered highest in ASEAN. This was partly due to SET's collaboration with securities firms, asset management companies and commercial banks to expand local investor base in every channel nationwide, as such increasing number of new investors in the equities and derivatives markets by 63,863 and 4,750, respectively.
In addition, in the second half of this year, SET would intensively expand domestic investor base by organizing 25 various activities with alliances in provinces nationwide, while co-operating with securities firms to implement "Stock-Saving" campaign and exclusive seminars by analysts for analysts in Bangkok and metropolitan area.
Meanwhile, the market capitalization of new IPOs from 15 securities has already reached the total of THB 159 billion (approx. USD 4.7 billion), approaching its THB 250 billion target for the whole 2015, partly due to the successful listing of large securities such as Jasmine Broadband Internet Infrastructure Fund (JASIF) and Global Power Synergy pcl (GPSC) and the listing of holding companies which have a core subsidiary company abroadsuch as PM Thoresen Asia Holdings pcl (PMTA), while the fundraising of listed companies from secondary market was worth a combined THB 136 billion, making it ASEAN's highest recapitalization in term of amount.
In addition, average daily derivatives volume were 192,878 contracts, exceeding 2015 target of 190,000, mostly due to increases in single stock futures and SET50 index futures.
"We have promoted quality and sustainability and it pays off in the first half of this year. Looking forward, SET will further materialize the "Diversified - Digital - Sustainable - Internationalized" (DDSI) concept by diversifying products and services, increasing liquidity and enhancing operational system to become a digital exchange, as well as continuously working closely with capital markets in the Greater Mekong Subregion (GMS) as a GMS connector," said Kesara.
Kesara added that SET would continue to focus on the diversification of products and services in the second half of this year by including the natural rubber ribbed smoked sheet (RSS3 futures) trading on TFEX after the related rules and regulations have become effective. TFEX would welcome AFET members to TFEX to operate seamless trading after preparation of several relevant aspects. We also provided training for AFET staff and would arrange seminars in major cities to promote agricultural derivatives trading among investors.
To expand the long-term investor base, SET will promote provident fund investment for employees' financial sustainability via "Employee's Choice", enhancing financial planning knowledge for retirement among employees according to the age group to promote better returns and more opportunities in the long run, while providing financial and investment knowledge for investors and stakeholders.
Moving towards digital exchange to cope with lifestyle of investors in the digital era, SET has launched "SETApplication" which could attract 44,000 downloads after the launch in April, and has facilitated investors byrevamping SET's website with one single channel to facilitate investor convenience which could draw 33,000 registrations within the first two months. In addition, SET has also introduced "Click2Win" program, a virtual online investment through smart phones for stock and derivatives trading.
To expand new listings, in July there have been three new listed securities with market capitalization worth THB 29 billion, including North Bangkok Power Plant Block 1 Infrastructure Fund, Electricity Generating Authority of Thailand (EGATIF), becoming the first state enterprise infrastructure fund ever listed on SET. In the rest of this year, there have been eight securities awaiting to be listed, while other 16 are waiting for approval. The fundraising from existing companies is expected to meet this year's target. To make it convenient for securities issuers, SET has also developed digital listing services (Digital IPOs) for all products set to be launched by Q1/2016.
To expand foreign investor base on both SET and TFEX, SET has planned to organize outbound roadshows which would provide opportunities for small and medium-sized listed companies to meet foreign investors directly. The upcoming outbound roadshow this year will be in New York, the United States. Just as important as the outbound roadshows, SET will organize the annual inbound roadshow called "Thailand Focus 2015" in August, by inviting foreign fund managers to meet Thai listed companies for insights of the Thai capital market and economy.Significantly, SET will continue the GMS connector role by providing multiple fundraising tools for GMS and other foreign companies covering primary listing, secondary listing, infrastructure fund and infrastructure trust as well as offering GMS-related products such as GMS Depository Receipt (GMS DR). Furthermore, SET has continued to publicize securities list of 111 Thai companies invested in GMS on the SET website, boosting investment opportunities in GMS through Thai listed companies.
In promoting quality development and sustainable investment, SET has prepared assessment criteria called "Thailand Sustainable Investment" and will announce a list of Thai listed companies with prime performance on environmental, social and governance (ESG) aspects in October 2015. This will be used as quality information investment and for decision-making tools, as part of SET's plan to promote sustainable quality development among Thai listed firms. The next steps will be the development towards creating the Dow Jones Sustainability Index (DJSI) of Thailand in line with the guidelines of the Dow Jones Sustainability Index, to be used as indicators matching the international standard.
The Thai bourse is committed to promoting financial and investment education and will continue to expandinvestment knowledge nationwide via educational projects called investor classroom and SET Investment Centers (SET IC) in major provinces all over Thailand. SET will continuously enhance quality for capital market professionals, investment consultants, securities analysts, commercial bank staff and students in acquiring licenses.
Members of the media please contact the Public Relations Unit, Corporate Communications Dept.: Arada Kultawanich tel: +66 (0) 2229 2796 / Darawan Maleesri tel: +66 (0) 2229 2798 / Kanokwan Khemmalai tel: +66 (0) 2229 2048.