Apple, Tesla focus of new fractional trade
The Stock Exchange of Thailand (SET) and state-owned Krungthai Bank (KTB) are launching fractional depositary receipts (DRx), a tool that can help investors buy a part of leading global companies such as Apple and Tesla Inc.
The SET plans to launch AAPL80X and TSLA80X, the respective DRxs of Apple Inc and Tesla Inc, on Sept 29 to enable investors to own a piece of international tech companies with high growth potential.
The Securities and Exchange Commission agreed earlier this year the SET could amend its regulations for depository receipts (DR), allowing partial unit purchases (DRx).
The move helps promote a wider variety of products based on foreign securities, allowing investors to conveniently diversify their portfolios in overseas markets, even with a small sum of money.
Stock for both Apple and Tesla trade on the Nasdaq Stock Exchange in the US, with the planned DRxs both issued by KTB.
Investors can trade via the SET's real-time trading streaming application. The new product is available for trade at night -- from 8pm to 4am -- through local brokers.
SET president Pakorn Peetathawatchai said DRx units were designed to match investment trends, as young investors want access to world-class stocks via a small outlay. By purchasing shares through DRx or DR, investors will receive benefits as if buying foreign securities directly, he said.
Mr Pakorn said there is also a special feature allowing investors to send orders without having to complete one DRx unit (starting at 0.0001 unit), and they do not have to trade in baht.
DRx is open for trading during the business hours of the underlying security in the global market, allowing investors to monitor price movements and adjust their outlays in a timely manner, he said.
KTB president Payong Srivanich said the bank is working to develop financial products and services to meet the needs of its customers.
Both Apple and Tesla are familiar to Thai investors and have strong foundations with high growth potential, he said.
Apple is well known for its products such as the Mac computer, iPhone, Apple Watch and iPad. Tesla is the world's largest electric vehicle manufacturer, with profit margin growth of 25.3% in 2021 and 27.2% in the first half this year, said Mr Payong.