SET to offer index for firms that have foreign exposure
published : 2 Sep 2014 at 06:00
newspaper section: Business
The Stock Exchange of Thailand plans to launch an index based on listed companies that have foreign revenue in order to help investors track which stocks actually have international exposure.
Pakorn: Widening investors' outlook
The SET is screening qualified stocks to be components in the index and selecting an index provider, said Pakorn Peetathawatchai, executive vice-president for corporate strategy and finance. The index is expected to be unveiled next year.
Mr Pakorn said the index will help investors track which listed companies have international exposure, while mutual fund firms can use it as an underlying asset for a new type of fund.
Now investors must research for themselves which companies invest abroad, said Mr Pakorn.
"Knowing which companies have international exposure can provide diversification for investors during times the Thai economy is tepid," he said, adding that despite the lacklustre economic environment in the first six months, listed companies' net profit and revenue have remained solid thanks to their diversified revenue abroad.
SET-listed companies gained 2.9% in aggregate net profit during the first half to 426 billion baht, with earnings from the energy, banking and property development sectors accounting for some 57.3%.
Last year, 109 listed companies expanded abroad with a combined investment of 68.3 billion baht. East and Southeast Asia were the main investment destinations.
Mr Pakorn said investments outside Southeast and East Asia were rising.