Tisco, Deutsche Bank team up for investment venture

Thailand's Tisco Securities Co and the local office of Deutsche Bank have formed a joint venture to provide investment advice to mainly institutional investors.

They aim to be the third-largest player in Thailand's wholesale equity market by the end of 2014.

Tisco Securities, the brokerage arm of Tisco Group, holds 51% of Deutsche Tisco Investment Advisory, while Deutsche Bank has the remainder.

"Although Thailand's wholesale equity business has been highly competitive, the reason we are still doing business here is that we have a long-term commitment to be among the top three," said Nilesh Navlakha, head of Deutsche Bank's Southeast Asian equities.

'This has also completed Deutsche Bank's business jigsaw in Asia. The joint-venture model is proven for a decade in Indonesia and the Philippines, where we are among the top three."

He said Thailand's stock market is one of the fast-growing markets in Asia, with market capitalisation of more than 12 trillion baht.

Deutsche Bank has partnered Tisco Securities in research since 2002. The brokerage has helped bolster the bank's presence here.

Paiboon Nalinthrangkurn, chief executive of Tisco Securities, said the joint venture would help Tisco tap the foreign institution segment and support the capital market by attracting foreign investors.

He said the venture would increase Tisco Securities' market share to 4% from 3% at the end of last year.

"Tisco Securities forecasts the SET index will reach 1,650 points under the assumption that earnings of listed companies will grow 20% with an average forward price-to-earnings ratio of 15 times, in line with Asean," said Mr Paiboon.

Deutsche Bank has networks in 72 countries and 14 branches in Asia including Thailand, Indonesia, the Philippines and Vietnam.

About the author

Writer: Darana Chudasri
Position: Business Reporter