The total value of securities traded on the Stock Exchange of Thailand is expected to decrease this year from 2022 as concerns about the global economic slowdown and US interest rate hikes affect investor confidence, says the Association of Securities Companies (Asco).
Chairman Pichet Sitthi-Amnuai said Asco anticipates the securities industry will not perform well this year as trading activity on the local bourse could weaken. As a result, brokers that rely on fees could be negatively affected, said Mr Pichet.
"There is high competition in the industry, with some securities firms offering zero commission fees, kicking off a new price war," he said.
"Securities firms have to adapt to cope with the price war."
Asco has been working with regulators to raise the level of oversight for securities companies after the More Return (MORE) share price manipulation scandal last year.
Initially a securities bureau is planned under Asco's supervision to screen investors' backgrounds and exchange information among securities firms.
"There are also discussions happening with relevant parties to improve regulatory guidelines," said Mr Pichet.
In his role as president of Bualuang Securities (BLS), he said the brokerage would continue to diversify to other related securities businesses this year.
The strategy aims to capture opportunities in other areas amid declining brokerage fee income as negative sentiment continues to pressure stock investments, said Mr Pichet.
BLS earns roughly 60% of income from brokerage fees, 10% from the investment banking business and the remainder from insuring securities products such as depositary receipts, derivative warrants and other products.
Despite intense competition, BLS retained a market share of 9.63% last year in the securities trading business, doubling over the past decade as the brokerage provided integrated securities services to investors, he said.
The company's strategy involves increasing the number of contact points for customers and training staff to provide better advice to investors regarding financial and investment products, said Mr Pichet.
BLS aims to expand its new investor base to a target of 30,000-40,000 new trading accounts this year, in addition to its 640,000 existing accounts.
For the investment banking business, BLS has 3-4 initial public offering deals on hand for companies in the food, automotive and health sectors, he said.