|
|
| • EXCH RATES |
|
Baht/$ 34.85/88 (Bid/Ask)
|
GOLD |
12550
-100
|
|
330 firms trading below book value
NUNTAWUN POLKUAMDEE
The Stock Exchange of Thailand hopes to finalise plans for its new 8.25-billion-baht matching fund programme sometime next week.
Officials hope that the matching funds, involving capital from the SET, listed companies, private investors and financial institutions, can help support the ailing equity market, which has seen lost more than half its value this year due to the global financial crisis.
Vichate Tantiwanich, a SET executive vice-president, said the new matching funds would offer greater flexibility than an earlier programme involving local asset management companies.
He said very low share valuations represented a golden opportunity for long-term investors to accumulate fundamentally sound stocks.
"Right now, we have over 330 listed companies trading below book value. More than 90 companies now offer dividend yields of over 10%," Mr Vichate said.
The comments came as the SET index fell yesterday by 3.49% in volatile trade, despite gains in other markets in the region.
The index closed at 384.15 points, down 13.89, in trade worth 15.73 billion baht. The index rose as high as 412.46 in morning trade, buoyed by strong gains overnight on Wall Street, before sliding steadily until the close. Losers outpaced gainers 205 to 130, with 92 stocks closing unchanged.
Energy stocks fell 5.42% for the day, despite a modest rebound in crude prices. Banks dropped 1.54% while tech stocks lost 9.37%.
SET chairman Pakorn Malakul na Ayudhya said the matching fund programme would have three classifications: one involving financial institutions, a second with asset management companies and a third co-investing with listed companies.
He said the first fund would be five billion baht in size, with the SET providing one billion in initial capital and the rest from financial institutions.
Structural changes in the fund are needed after the Bank of Thailand declined to waive investment regulations for local banks limiting investments.
"I would like everyone to try to look at the bright side. The fundamentals of the Thai economy remain relatively strong, certainly much stronger than in 1997," Mr Pakorn said.
Kampanart Lohachareonvanich, the chairman of the Association of Securities Companies, said authorities should waive capital gains taxes for listed companies investing in the market.
"I think if we can see new measures implemented quickly, it can only help the equities market recover all the faster," he said.
Meanwhile, the Securities and Exchange Commission announced yesterday that starting from Nov 15, asset managers must disclose the top five securities held by all mutual funds, excluding property funds and closed-ended funds.
Pravej Ongartsittigul, the SEC senior assistant secretary-general, said regulators were assessing the impact the global crisis was having on asset managers and brokers on a daily basis.
"We want to ensure that investors have timely, sufficient information to make decisions while the markets remain highly volatile. The additional information will be made available from each fund manager's website," he said.
Fund managers will have to disclose the top investments made by their funds separately for equities and debt instruments. Credit ratings for debentures and bonds must also be stipulated. The added disclosure rules also include investments made by funds of funds, or mutual funds that also invest in other unit trusts.
Mr Pravej said the industry was expected to post flat growth this year compared with 20-30% annual growth over the previous two or three years.
Prakit Punyashthiti, director of the SEC investment management supervision department, said regulators had also relaxed several rules in light of current conditions.
Mutual funds with net assets under 50 million baht no longer face closure, while fund managers now can accept transactions for retirement mutual funds and long-term equity funds year-round instead of restricting trades for certain periods of time.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Next
