Bangkok--Mar 8--SET
The “Top Executives’ Networking Forum 2005”, held on March 4 in Phuket, showcased 3 brand new markets-- the Market for Alternative Investment (mai), Thailand Futures Exchange (TFEX), and Bond Electronic Exchange (BEX). The Forum was organized by the Federation of Thai Capital Market Organizations (FeTCO) and effectively showcased the attributes and plans of the new markets to complete the big picture of the Thai capital market. New alliances will be formed to help increase their capital market accomplishments.
The mai President, Mr. Vichate Tantiwanich, confirmed that the products on the mai are comparable with those on the SET, despite their smaller sizes and capital holdings.
Currently, the companies to be listed on the mai must hold capital worth between THB20 mln. to THB300 mln.. Enterprises with larger capital are to be listed on The Stock Exchange of Thailand (SET). In addition, the mai encourages its listed companies to have their subsidiaries listed on a member-get-member program, in an attempt to draw more investors’ interest to the mai.
According to its 5-year plan, Mr. Vichate said the mai would provide a variety of choices for investors and he expects to see 500 listed securities listed on the mai with overall registered capital of THB250,000 mln., by 2009.
On market demand aspects, he stated that the mai would draw more investments from professional companies to attract general shareholders, begining with a mutual fund managed by Siam Commercial Bank Asset Management Co., Ltd.
The Managing Director of the Thailand Futures Exchange Public Co, Ltd (TFEX), Mrs. Kesara Manchusree, revealed TFEX’s system was currently under construction and it would be ready to commence trading late this year with the SET50 Index Futures.
So far, 16 brokers have signed up for the TFEX. The company extended the registration period for interested brokers until March 7.
Mrs. Kesara believed understandable information on the Futures Exchange would help create a better comprehension of the market among traders.
Furthermore, the TFEX has joined forces with the Thailand Securities Institute in launching several training programs to provide better understanding about the Futures Exchange to investors. This attempt includes a course on basic knowledge of the market and the “First Step on the Futures Exchange” session.
Those interested in joining training courses can contact the S-E-T Call Center at 0-2229-2222 or log on www.tsi-thailand.org. Admission is free of charge.
Meanwhile, the Chief Executive Officer of the Bond Electronic Exchange (BEX), Dr. Santi Kiranand said the BEX would focus on 3 goals, which are “easy access, low capital requirements and then better liquidity ”.
Given the large number of products in the market, he believed the BEX would attract more investors and create more liquidity in the market.
At present, the BEX holds 16 issuers with total 42 corporate bonds worth approximately THB200 bln (approx. USD5 bln.).
The BEX expects to see more investment from corporate debentures and government bonds by July, which could lead to bonds worth as much as THB2 trillion (approx. USD50 bln.) in value.
Dr. Santi urged listed companies to seek equity financing via bond issues, since it required the least amount of capital. He also encouraged these companies to undergo credit rating before issuing debentures.
The BEX would provide financial support to potential companies undertaking credit rating and would waive registration charges for those registered on the market by the end of December 2005.
In addition, the BEX has invited member companies to join the Thai bond exchange, due to the relatively low cost of capital via debt instruments.
The BEX will also help facilitate the diversification of the bond market to include retail investors who trade via brokers. In 2006, the BEX will aim for higher capital values from bank clients.
According to the Finance Ministry’s plan to promote the bond trading market, the BEX is gearing up its collaboration with the Thai Bond Dealing Centre (TBDC) and will begin its implementation beginning in June 2006.
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.