Bangkok--3 May--SET
Thailand Securities Depository Co., Ltd. (TSD)’s Q1/2007 performance report revealed that efficiency in clearing and settlement was boosted to 99.98%, giving solid grounds for confidence in investing in the Thai market. TSD’s active promotion of securities borrowing and lending (SBL) transactions among agencies and institutions holding high amounts of securities led to nearly THB 217.60 million (approx. USD 6.22 million) in SBL transactions in Q1/2007, which resulted in a 70% reduction in clearing and settlement defaults.
“Securities clearing and settlement during the first quarter was THB 132,299 million (approx. USD 3.78 billion), out of THB 744,173 million (approx. USD 21.26 billion) (17.78%) in securities traded on the Thai stock market, a slight increase on the 16.42% proportion reported last year. Meanwhile, there were 148,263 derivatives contracts cleared and settled during the quarter, with a combined value of THB 68,638.90 million.
The quarterly report shows that securities depository (combining stocks and bonds depository services since May 2006) embraced a total of THB 5.79 trillion (approx. USD 165.43 billion) in securities deposited, due to an increase of THB 300 billion from the end of 2006, or a 5% year-on-year (y-o-y) rise. This was made up of 370.57 billion stocks worth THB 3.39 trillion and 440 government bonds worth THB 2.40 trillion, representing 75.55% of state bonds for which the Bank of Thailand was previously the registrar. Moreover, TSD also persuaded many shareholders to deposit their securities with the company through the accounts of 529 issuers, resulting in THB 91,551.35 million in securities deposited and increased convenience to investors,” TSD Chief Executive Officer Ms. Sopawadee Lertmanaschai said.
By end-Q1/2007, TSD was registrar for 522 companies listed on The Stock Exchange of Thailand (SET) and the Market for Alternative Investment (mai), totaling a registered worth of THB 5.1 trillion (approx. USD 145.71 billion), and the registrar for 55 bonds worth THB 139.27 billion (approx. USD 3.98 billion). TSD paid out dividends and interest for 185,560 transactions worth THB 10,696 million, with 101,420 transactions or 55% being through the e-Dividend service.
As a fund registrar, in Q1/2007 TSD provided services for 153 funds, including 93 provident, 24 mutual, 22 retirement mutual and 14 long-term funds, with a total worth of THB 105,011 million (approx. USD 3.00 billion) - a 56% increase over 2006, when it serviced only 98 funds. The depository’s “back-office” service for securities firms provided comprehensive support for the securities, bond and derivatives markets. Currently, there are 10 securities companies using back-office services for the stock market, eight for the bond market and 24 for the derivatives market, Ms. Sopawadee added.
Turning to financial performance, TSD recorded THB 185.1 million (approx. USD 5.29 million) in revenue from operations, which is similar to last year’s record, with 65% coming from the registrar service, followed by 18.3% from depository service revenue. TSD’s quarterly profit was THB 15.6 million, an 18.32% year-on-year decline on Q1/2006’s THB 19.1 million.
“In Q1/2007, TSD undertook a range of client-relations activities, including the TSD Networking Night seminar featuring the topic: “The Bank of Thailand’s policy on the capital market”, the OMX-joint seminar entitled: “CSDs and global capital market trends, challenges and opportunities”, the Golf Match Play competition, and several corporate social responsibilities activities. Youth formed a particular focus of our endeavors, as they are essential to Thailand’s future. On National Children’s Day TSD distributed stationery to the students of Wat Klongtoey school, near to SET, and donated THB 300,000 together with new educational equipment to three schools in Ang Thong province that were hard hit by last year’s floods. The depository also gave a number of golf carts to Thammasart Hospital for patient transport, and provided cash and basic necessities to fire victims in the Klongtoey community,” Ms. Sopawadee concluded.