Bangkok--Mar 8--SET
The Stock Exchange of Thailand (SET) unveiled its SET100 during the
“Top Executives’ Networking Forum” in Phuket. The SET hopes to mirror the
bigger picture of the Thai capital market, where more products are now becoming
available and the market is coming in line with leading foreign markets. The SET
plans that the SET100 will help promote the liquidity of medium-sized corporations
by providing more investment options. The new index will be launched on May 3,
2005. Securities companies understand that the SET100 was created to help promote
quality companies and hope that it will serve as a firm base on which Thailand’s
economy can leapfrog to greater growth.
Dr. Sethaput Suthiwart-Narueput, SET Senior Vice President- Research
and Public Information Division, revealed at the “Top Executives’ Networking
Forum 2005”, held from March 4-6, 2005, that the SET will introduce its SET100
index, which is an additional price index designed on the SET and SET50 indices,
to provide the market with an index covering 100 medium- to large-sized companies
which have suitable levels of liquidity and share distributions. The new index
will better be able to reflect the current THB5 trillion market capitalization.
“Currently, companies in the SET50 Index represent only 11% of all
listed companies on the SET, but their joint trade volume is equivalent to more
than half of the total volume and has a market value of 72% of the entire market.
The introduction of the SET100 will help distribute investment to cover all the
quality medium-sized companies, resulting in better liquidity for each company”,
said Dr. Sethaput.
In terms of benefits for listed firms, Mr. Vicha Poolvaraluck, President
and CEO of Major Cineplex Group Plc, agreed that the SET100 Index will play a major
role in pushing for business growth while helping each firm to reach a suitable
size and more market capitalization. This is because the index will not only open
chances for more institutional investors to invest, but will also attract more
retail investors who are interested in firms listed in the SET100.
Mr. Thavatchai Vilailuck, President of Samart Corporation Plc, said that
being included in the SET100 group will greatly benefit medium-sized companies
because, at present, institutional investors and securities analysts have not
shown an interest in companies smaller than those found on the SET50.
The SET SVP went on to say “the criteria that will be used in selecting
companies to be included in the SET100 group will include a liquidity criterion
and each company’s share distribution, just like those used for firms included in
the SET50. This means companies included in the SET100 and the SET50 must be from
the same group of listed companies, which have recorded average market values
during the past 12 months that made it into the top 200 list and have had constant
trade volumes as well as have a free float of not less than 20%. The shares that
pass these criteria will be ranked in accordance with their market value. The top
50 firms will be included in the SET50, and the top 100 companies will be included
in the SET100”.
The SET will announce the firms that will comprise the SET100 on April
18, and will start publicizing the new index commencing from May 3, 2005. The
share prices on April 30, 2005 will be the base date and the index will start at
1,000 points.
“Any adjustments to the share lists on the SET100 and SET50 will be
announced every 6 months, or around June 15 for the firms to be used during the
second half of the year, and around December 15 for the companies to be used
during the first half of the year. The names that will be announced will consist
of firms that are used in the index calculations for the SET100 and the SET50.
The back-up list will be used for index calculations only when the common shares
currently on the SET100 or the SET50 are removed from the stock market”, concluded
Dr. Sethaput.
Attachment to the SET Release No.42/2005 March 4, 2005
Overview of SET’s Price Indices (Jan. - Feb., 2005)
Highlight statistics SET SET100 SET50
No. of Listed Companies 444 Companies 23% of total listed companies 11% of total listed companies
Market Capitalization THB 4.86 trillion 81% of total market capitalization 72% of total market capitalization
Trading Turnover THB 810,930 mln. 73% of total trading turnover 59% of total trading turnover
For more information,
please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 /
Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 /
Watsamon Saowakhonsathien Tel: 0-2229-2797 End.