SET, MAI expect winning streak to run into 2015

SET, MAI expect winning streak to run into 2015

Investment sentiment in the stock market will remain positive next year with many new companies expected to be listed on both bourses thanks to the restoration of political stability.

Kesara: More listings in sight next year

Kesara Manchusree, president of the Stock Exchange of Thailand (SET), said the SET and the Market for Alternative Investment (MAI) have beaten their earlier targets of bringing new listings on the market.

The SET saw 13 new listings this year and expects to list one real estate investment trust (REIT) by year-end.

It has beaten its earlier target to raise market capitalisation to 280 billion baht from new listing firms from the previous target of 210 billion.

The MAI boasts the same success, bringing 18 new listed firms onto the market this year, with market cap hitting 40 billion baht, up from an earlier target of 30 billion. It also plans to list two new firms next month.

The SET and MAI have raised a combined total new market cap of 320 billion baht for the entire year. The main reason for the success is the improving political situation from the crippling political conflict that started in last year's fourth quarter and which dragged on until May this year before the military stepped in and took control.

"Many new firms have listed this year due to the improving market sentiment in the second half of this year. Many also don't want to delay plans until next year, as there is uncertainty including concerns over a global economic recovery," said Mrs Kesara.

She said the SET and MAI had set similar targets for next year with a plan to bring in foreign-holding firms, REITs and infrastructure funds.

Manpong Senanarong, managing director of Kasikorn Securities, said market sentiment would remain positive until the first half of next year, so new listings were expected. The brokerage plans to bring a few firms into the market next year.

Nevertheless, the political impasse in the first half of the year has affected the earning growth of companies listed on both the SET and the MAI. Profit growth of companies in the first nine months was lower than analysts' expectations.

Of the combined 494 listed firms being actively traded, 401 posted net profits in the third quarter, representing 81.2% of the total.

Net profits of the 401 listed firms totalled 195 billion baht, down by 5.17% year-on-year, while sales rose by 3.29% to 2.9 trillion baht.

The three best-performing sectors were energy and utilities, banking, and information and communications technology, with a combined nine-month net profit of 391 billion baht or 63.7% of the total 614 billion baht in earnings.

Companies on the MAI reported sales of 91 billion baht for the first nine months, up by 8.76% from a year earlier.

Due to rising operating costs, net profit decreased slightly by 0.71% to 4.19 billion baht from 4.22 billion the previous year. Sectors seeing a rise in net profit include financials, resources and consumer products.

At present there are 109 firms listed on the MAI.

On Tuesday, the MAI closed at 747.6 points, up by 110% from the start of the year, with total market cap standing at 387 billion baht.

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