Bangkok--3 Jul--SET
Thailand’s Bond Electronic Exchange (BEX) has become increasingly active after its electronic real-time trading system known as “Firsts”, has been implemented. Currently, the value of outstanding bonds is up by 271% from end-2005.
BEX aims for 30% of domestic trading volume to be transacted through BEX by end-2008. BEX will encourage the private sector to raise funds through bond issuance, with such issuances to reach 80% of GDP within the next 5 years, as proposed in the Second 2nd Thai Capital Market Master Plan. It will also focus on continued expansion of the retail investor base by organizing an educational fair, “Bonds for the People #1”, to be held in Phuket, at Thavorn Grand Plaza Hotel, on July 8.
Since the launch of its Fixed Income and Related Securities Trading System (Firsts) on March 1, 2006, trading volume on BEX has been consistently rising, CEO of BEX Mr. Santi Kiranand, Ph.D. stated.
He noted that Firsts has eased the execution of trades by market players, increasing trading volume in H1/2006 to THB 16,302.09 million (USD …), 421.24million), with the participation of 21 bond dealers. These dealers are made up of 13 commercial banks, and 8 securities companies, while a further 16 institutional investors who have participated are comprised of 13 mutual funds, 2 insurance companies and the Government Pension Fund.
The value of outstanding bonds traded on BEX by end-June has risen considerably to THB 2.86 trillion (USD…) 73.90 billion)(…when did the period start? we know it ended on June 30…..)— due to a sharp increase in bond registration listing by both government and the corporate sector. (…what’s the difference btw. bond registration and bond issuance? If no diff., then should use “issuance”……) Currently, registered listed bonds on BEX account for 79.33% of Thailand’s total fixed income instruments, Dr. Santi said.
In H1/2006, newly registered listed bond issues came to a total of THB 2.57 trillion (USD…), 66.41billion), of which THB 2.51 trillion were government bonds and THB 64.6 billion were private sector issues.
As part of nationwide expansion, BEX will continue activities to spread financial understanding and boost investment in fixed income instruments, Dr. Santi stated.
With the cooperation of Bank of Thailand (BOT) and The Thai Bankers’ Association (TBA), BEX will hold an educational fair “Bonds for the People #1” on Saturday July 8, 2006. Activities in the Phuket fair include a simulation workshop on portfolio management, exhibition booths featuring BEX member commercial banks and securities companies.
Furthermore, the “BEX Competition 2006: Finding the Bonds Wizard” will be held to educate university students in fixed income instruments and asset management. A team of 3 will be competing with other teams from all universities nationwide, from July 5—September 3, 2006.
Another major activity is the Bond Trading Simulation, a program to familiarize investors, students and the general public with bond trading. It will be launched in November 2006,
For more information regarding investment through BEX, please visit the BEX website at www.bex.or.th or contact SET Call Center 0 2229 2222.
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien