Ambitious SET aims to double its numbers

Ambitious SET aims to double its numbers

Settlement period to be shortened in 2015

The Stock Exchange of Thailand has set an ambitious goal of doubling its market capitalisation to 30 trillion baht and raising average daily trading value to 100 billion by 2020.

The Stock Exchange of Thailand plans to increase its average daily turnover from 44 billion baht this year to 52 billion next year and 100 billion by 2020. It also wants to double its market capitalisation to 30 trillion baht. THANARAK KHOONTON

A study is being conducted on how to shorten the settlement period for equity trades to two days from three in order to be in line with other major stock exchanges.   

An increase in companies seeking to list on the stock market, a wider investor base and surges in the bourse would boost the SET's market capitalisation to hit the target, president Kesara Manchusree said.

She estimates its market capitalisation will stand at 15 trillion baht by year-end.

The exchange plans to increase its average daily turnover from 44 billion baht this year to 52 billion next year and 100 billion by 2020.

The Thailand Futures Exchange (TFEX) is targeted for a rise in average daily transactions from 140,000 this year to 190,000 next year and 450,000 by 2020.

To promote the Thai stock exchange among foreign investors before the Asean Economic Community kicks off late next year, the SET plans to attract newly listed companies engaged in transport and logistics, tourism, health care, alternative energy, agricultural products and food.

Market capitalisation to be added from newly listed securities next year is targeted at 250 billion baht, down from an estimated 350 billion this year, as some companies have brought their initial public offerings forward to this year from next year.

This year, 40 newly listed companies with a combined market capitalisation of 278 billion baht have raised funds of 101 billion baht.  

Mrs Kesara estimated that both SET and Market for Alternative Investment (MAI) companies will mobilise fresh funds of 130 billion baht next year compared with 148 billion for the first 11 months of 2014.     

The SET targets 95,000 new investors next year from 82,000 for the first nine months of this year.

Mrs Kesara said the SET would push the use of the US dollar for settlements on the SET and TFEX and to link the Thai capital market with Greater Mekong Subregion members.

The SET expects to conclude shortening the settlement period to two days next year, she said, adding that this would help to mitigate brokerage houses' risks. Euro-zone bourses will start reducing their settlement cycles for equity trades next month, while Singapore will follow suit in 2016.

The SET plans to allow companies to seek listing through an online system next year.

Meanwhile, Chanitr Charnchainarong, an executive vice-president of the SET and head of its issuer and listing division, said seven securities would go public this month.

One will list on the SET and two on the MAI, while the rest are funds and trusts.

He forecasts the number of newly listed securities will reach 47 by year-end, with combined market capitalisation of 350 billion baht and raising 120 billion baht in funds.

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