MARKETS
TFEX to offer 10 new stock contracts
- By: NUNTAWUN POLKUAMDEE
- Published: 20/12/2008 at 12:00 AM
- Newspaper section: Business
The Thailand Futures Exchange will introduce 10 new stock futures contracts in 2009 to help meet growing demand for equities hedging instruments.
Kesara Manchusree, the TFEX managing director, said the need to hedge equities exposure was expected to increase next year as the equities market would remain volatile at least through the first half due to global recession.
The TFEX launched stock futures contracts on Nov 24 based on underlying common shares of PTT Plc, PTT Exploration and Production and Advanced Info Service.
Mrs Kesara said the exchange planned to increase its promotional and investor education programmes to explain the risks and benefits of single-stock futures.
New futures contracts would be introduced shortly for other large-cap stocks traded on the Stock Exchange of Thailand.
The TFEX also plans to launch gold futures contracts on Feb 2, and is considering the introduction of interest rate futures in 2010.
Mrs Kesara said trading on the TFEX averaged 8,700 contracts per day over the past year, below its trading target of 10,000.
"The derivatives market will be active when the equities market is volatile. But it's quite difficult to predict what will happen next year," she said.
Tanavatt Bhanijkasem, an executive vice-president at Phatra Securities, said investor education was critical if the TFEX were to grow.
Derivatives play an important role in risk management and hedging one's risk during a market downturn.
Mr Tanavatt said the market had rebounded in recent weeks thanks to an easing of political tensions and expectations that the new Abhisit Vejjajiva government could be effective in dealing with the economic crisis.
But the market over the next six months remains on a bearish trend. Taking a short position on TFEX contracts can help investors limit downside risk.
Warut Siwasariyanon, deputy managing director at Finansa Securities, said the stock market had been rising since the Democrat party emerged as the lead player in the new government, so it now was ready for profit-taking.
- Foreign funds remain buoyant about SET index
- MAI matching fund delayed
- Mister Donut plans aggressive sales campaigns
- Nestle' promotes coffee for health
- New condo supply plunges
- Modernform cuts sales target by 15%
- Food firms eye Singapore
- Bayer targets growth in pet medications
Keep this article in your social bookmark:
Or you can: 
