Regulators join forces with analysts on new research tools

Regulators join forces with analysts on new research tools

Capital market regulators and the Investment Analysts Association (IAA) are working together to produce securities research to enhance investment information, aiming to cover about 100 fundamental securities for small and mid-sized 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, aiming to increase the quality of securities research and expand the coverage scope of securities.

The project will be launched in September, with a target of providing research for 40 securities by the first year. The number will increase to 70 in the second year and 100 in the third year.

Stocks under coverage will include those in sectors expected to attract investment flows over the next few years, including well-being equities and those associated with the Eastern Economic Corridor scheme.

Technology disruption and fierce competition in the securities industry have forced firms to cut operating costs, resulting in less securities research, said IAA chairman Paiboon Nalinthrangkurn.

More than 500 SET-listed firms have no research for investors to study, Mr Paiboon said.

At present, the securities industry has a total of 280 fundamental analysts from 41 securities firms covering research of about 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 fewer opportunities to gain access to well-informed research compared with institutional investors.

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

Project expenditure will be passed on to the Capital Market Development Fund in the future, Ms Ruenvadee said.

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

The SET also plans to launch a new platform to provide investment information through an application programming interface in the third quarter, Mr Pakorn said, adding that real estate will be the pilot sector for the channel.

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