Medium- and small-cap stocks have become more popular among traders, as their trading volume is on the rise.
Their trading volume rose from 31% of all stocks in January to 40% last month, with the trend set to rise further.
Year-to-date, medium- and small-cap stocks accounted for 35% of the total monthly trade on average, up from 28% in the same period last year, while the top 10 largest stocks saw their trades drop to 32% from 39%.
Trading in stocks ranking 11th to 30th in market capitalisation (SET11-30) dropped to 23% year-to-date, down from 25% in the previous year.
Trade of those ranking 31st to 50th in size made up 11% from 8% a year before.
"We are glad that the non-SET50 stocks have become more visible on the radar screen of investors," said Veerathai Santiprabhob, the Stock Exchange of Thailand's chief strategist.
Their popularity increased because newly listed stocks this year are all non-SET50. As well, their prices surged by about 100% from initial public offering (IPO) prices.
However, the more active trades led to more alert signs posted on some stocks during the quarter.
"In October alone, the SET posted trading alerts on five stocks," he said.
In the first 10 months of this year, new funds raised by new IPOs and other listed companies totalled 126 billion baht, the highest since 2006 and up by 62% from last year.
Last month, two IPOs debuted on the SET worth a combined 3.43 billion _ VGI Global Media (VGI) and T.M.C Industrial (TMC). Funds raised from capital increases totalled 40.7 billion baht, mainly from Krung Thai Bank.
At the end of last month, the SET index closed at 1,298.87 points, up by 0.01% from September, while many regional markets declined amid economic uncertainties in the US, Europe and China.
Foreign investors were net sellers of US$582 million in October. Year-to-date, they remained net buyers of $1.55 billion.
The SET index has been the best performer in the region, up by 26.7% from the the end of last year.
Mr Veerathai said the major risk until year-end is how Washington will handle the "fiscal cliff", the possibility of sharp spending cuts and tax hikes to plug the gaping budget deficit.
About the author
- Writer: Darana Chudasri
Position: Business Reporter