Tisco shifts to local market

Tisco shifts to local market

Tisco Securities shifted its business plan to focus on local institutional and retail investors instead of offshore players in a bid to maintain its market share as foreign investors sell and their trading volume in Thai shares dips.

Paiboon: Time to diversify portfolios

After the coup, the trading ratio of foreign institutional customers declined to 20% from 30% at the end of last year, while that of retail investors rose to 50% from 40%, with local institutional investors unchanged at 30%, said chief executive Paiboon Nalinthrangkurn.

Foreign investors have been on a selling spree in the Thai stock market since the May 22 coup, with net selling of 44.40 billion baht this year through yesterday.

"The local market is retreating as investors digest the plans announced by the National Council for Peace and Order. The timing is right for investors to diversify their portfolios to foreign markets, especially Europe and North Asia where higher returns are expected," he said.

The subdued foreign trading volume in the first half could affect the company’s operating results, but their activities are expected to improve in the second half, said Tharatporn Techakitkachorn, Tisco Securities' managing director.

The firm kept its SET index target at 1,500 points this year, expecting average daily trading volume will rebound in the latter half to over 35 billion baht, up from 30 billion in the first half.

Europe is the most attractive foreign market as it has low interest rates, and North Asian countries are expected to enjoy export growth, said Mr Tharatporn.

Tisco Securities launched Global Trade Service yesterday, targeting high net worth customers with a trading limit of over 20 million baht. The service allows customers to trade global shares and exchange-traded funds (ETFs) in seven of the world's leading exchanges.

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