New securities research for better investment

New securities research for better investment

Capital market regulators and the Investment Analysts Association (IAA) have cooperated to produce improved securities research to enhance investment information, covering around 100 fundamental securities for mid- and small-size listed companies within three years.

The Stock Exchange of Thailand (SET) and the Securities and Exchange Commission (SEC) have invested 24 million baht in the project,intended to increase the quality of securities research and expand the coverage of securities unreported by securities companies.

The project will be launched in September, with a target to research 40 securities in the first year. This would increase to 70 in the second and 100 in the third year.

Stocks to be covered would be in sectors deemed to attract investment flows over the next few years, including well-being equities and those associated with the Eastern Economic Corridor project.

IAA chairman Paiboon Nalinthrangkurn said Technology disruption and fierce competition in the securities industry have forced firms to cut operation cost, resulting in lesser securities researches as part of the cost-cutting policy.

More than 500 SET-listed firms have no research for investment information, he said.

At present, the securities industry has a total of 280 analysts from 41 securities firms researching around  200 SET-listed companies.

The SET has 720 listed firms in total, with 2,400 securities issued for investment on the bourse.

Retail investors in Thailand's stock market generally have less opportunity to gain access to well-informed research than do institutional investors.

SEC secretary-general Ruenvadee Suwanmongkol said the project will help retail investors have greater access to quality investment information and will assist in analyses of the differences in business and equity size.

Project expenditure will be passed onto the Capital Market Development Fund in the future, Mr Ruenvadee said.

The bourse has been encouraging securities firms to increase the quality and quantity of equity research to enhance investment knowledge of medium- and small-size listed companies with good business prospects, SET president Pakorn Peetathawatchai said.

The SET also planned to open a new platform to provide investment information through an application programming interface, expected to be launched in the third quarter, said Mr Pakorn. The the first sector preparing to share investment information through this channel was real estate.

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