Bangkok--24 Jan--SET To increase liquidity and offer yet another attractive investment option, The Stock Exchange of Thailand (SET)’s Board of Governors approved a second equity exchange-traded fund (equity ETF) to be established by July 2008, using the SET Energy Sector index as the underlying index . The new equity ETF, which is the first of its kind in Thailand, will contribute to the widening variety of investment tools available to the market, attract new investors, stimulate trade and provide more business opportunities for mutual funds and securities companies, SET Executive Vice President and Board of Governors Secretary Suthichai Chitvanich said. “Discussions about this new product with local and foreign institutions uncovered a great deal of interest in the energy sector, because of its high liquidity. Consequently, the new equity ETF will be well received by both investors and the market as a whole. As of December 28, 2007, the energy sector had recorded market capitalization of 35%, the largest contribution to SET’s total market cap. “This equity ETF will have an initial value of no less than THB 300 million, with the Exchange investing THB 30 million in it as seed money ,” Mr. Suthichai added. SET will set up a working committee to choose a fund manager and/or team. The selection criteria will be similar to those used to find the fund manager for the SET50 Equity ETF. The process will require the successful candidate to appoint at least one market-maker, have an adequate marketing plan, display a high level of relevant knowledge and be capable of developing an operating system to accommodate equity ETF by end - July 2008. Basically, the requirements are virtually the same as those for the setting up of Thailand’s first equity ETF, ThaiDEX equity ETF (TDEX). Investing in an equity ETF is similar to investing in a stock, although trading is attached to a specific index. An ETF can be traded using any broker and can be quoted on a real-time basis. equity ETF’s will have market-makers to assure liquidity.As at end-December 2007, Thailand’s first equity ETF, TDEX, had recorded a 140% increase in its market cap, from THB 1 billion to more than THB 2.4 billion, and an average daily turnover of THB 85 million. This was an extraordinarily good result, compared to other Asian equity funds. For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797