The Association of Securities Companies (Asco) is confident securities companies will be profitable this year, assuming average daily trading on the Stock Exchange of Thailand (SET) does not fall below 40 billion baht.
Pattera Dilokrungthirapop, chairperson of Asco, said the average daily trading value should total 40 billion baht regardless of foreign fund inflows.
She said 38 active trading brokers could enjoy a profit this year, thanks to higher stock trading value contributed by retail investors amid the low interest rate environment.
Retail trading now dominates 55-60% of total trading, followed by foreign investors (10-15%), local institutions (10-12%) and brokers' proprietary trading making up for the rest.
The SET raised its annual target last week for average trading value to 49.5 billion baht a day, far higher than the previous target of 32 billion, after trading value in the first half doubled to over 60 billion per day year-on-year.
Mrs Pattera said retail investors are now much more knowledgeable and have investment skills to earn profits even when the market is declining.
On the supply side, the market offers various financial instruments including derivatives and futures to meet investors' demand. She added local retail investors are increasingly interested in equity trigger funds, a major driver for the stock market in recent months.
Aira Securities said in a research paper SET-listed Asia Plus Securities (ASP) is the most interesting stock among its industry peers, given its diversified business, activity in the investment banking business and potential increase in profit margin.