Bangkok--Apr 5--SET
President of the mai (Market for Alternative Investment) Mr. Vichate Tantiwanich announced that investors are becoming even more interested in mai stocks, as can be seen from results of Q1/2005. The average daily turnover on the mai jumped to THB199.00 mln., or an impressive 275% rise over last year’s THB53.06 mln. The total market capitalization has also risen by 48% to THB11.94 bln. (approx. USD298.50 mln.). Presently there are 24 listed firms on the mai, which have raised funds worth THB3.21 bln. (approx. USD80.25 mln.) in total.
The average turnover ratio in Q1/2005 soared by 151% year-on-year, from 0.41 last year to1.03 times this year. It is estimated that the turnover will reach 4.12 times by end-2005.
Regarding the earning/price ratio (EPR), which helps in comparing returns between the mai stocks and 12-month fixed deposits, the EPR of mai stocks was 8.78% in 2004 and 9.57% for Q1/2005, which is significantly higher than the 1% available on bank deposits. The 2004 dividend yield of mai stocks was recorded at 5.4%, significantly higher than the 3.87% of the SET-listed stocks. This mai dividend yield represents a 286% year-on-year growth from the 1.4% of 2003.
“We expect total market capitalization of the mai will rise by THB22.80 bln. (approx. USD570.00 mln.) by the end of 2005. This can be achieved by our target of 40 listed companies with averaging THB500 mln. (approx. USD12.50 mln.) in market capitalization. The mai will be more proactively carrying out our marketing plans to increase both the number of listed companies and investors on the mai,” said Mr. Vichate.
The mai has been cooperating with the brokerage companies since March 2005 to ensure that investors will have research reports on mai stocks helpful for making investment decisions. Currently there are 13 securities companies cooperating with the mai to produce research reports on mai stocks. They are Adkinson Securities Pcl., Ayudhya Securities Pcl., DBS Vickers (Thailand) Co Ltd., KGI Securities (Thailand) Pcl., Kim Eng Securities (Thailand) Pcl., Intel Vision Securities Pcl., Seamico Securities Pcl., SICCO Securities Pcl., Syrus Securities Pcl., TISCO Securities Co., Ltd., Trinity Security Co., Ltd., TSEC Securities Co., Ltd., and United Securities Pcl.
As of March 29, 2005, a total of 25 research reports have been produced and will be gradually disseminated through various channels, e.g., www.mai.or.th, www.settrade.com., Manager Daily Newspaper, Thunhoon Newspaper, and the Family Know-How’s TV and radio programs.
Promotions will also be undertaken to further encourage the participation of institutional investors. There will be mutual funds established to invest specifically in mai stocks. SCB Asset Management is in the process of getting approval for its mutual fund. Other institutions will be encouraged to take part.
The mai will apply 2 strategic approaches to attract more companies to list: 1) collaborate with the SME Bank, which is providing loans to mai-type entrepreneurs, and 2) cooperate with financial advisors and auditors.
Under the collaboration of the mai and the SME Bank, the Bank will be lending up to THB10 mln. per company to prepare for mai listing. The loans may be used to develop the company’s administration system, the hiring of its financial and legal advisors, and/or expanding the company’s business. To qualify, the loan recipient will have to be successfully listed within 3 years.
Existing mai-listed firms are also eligible for the SME Bank’s loans. They may need additional funds to improve efficiency in, for example, their accounting, inventory or internal control systems. Interested companies can contact the mai at tel: 0-2229-2023, 0-2229-2026, and 0-2229-2028.
Mr. Vichate added that: “As for the cooperation with the financial advisors and auditors, we will jointly assist potentially listed companies to properly attend to important concerns such as internal controls, financial statement production, and the elimination of any conflicts of interest, so that firms seeking listing can do so more effortlessly and expediently.
“The issue of adjusting the accounting period of mai-listed firms to be different from that of the SET-listed ones, hence reducing the congestion of the auditors’ workloads, will also be discussed. The mai will conduct a study on what industries will be able to have their accounting periods changed”, he went on.
Meanwhile the mai has tuned its positioning and image to be more modern, as it has targeted the active new generation of entrepreneurs. Recently it has launched the ‘mai FANZI Club’ to be a center for the networking of mai-type entrepreneurs. The club members will soon have the opportunity to jointly present project papers crucial for the development of medium-scale businesses to the Deputy Prime Minister and Finance Minister, Dr. Somkid Jatusripitak.
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
Click for photo release at www.thaipr.net End.