BAY trading not alert-worthy
The recent rally in Bank of Ayudhya (BAY) shares did not meet the Stock Exchange of Thailand's trading alert criteria for triggering trading curbs, says SET president Kesara Manchusree.
Her comment came after wild trading swings for BAY since last week. The stock nearly doubled at one point to 104 baht in only a week on rumours that Bank of Tokyo-Mitsubishi UFJ (BTMU), which owns a 76.88% stake in BAY, plans to buy the remaining shares and delist the stock from the Thai bourse.
Kesara: Working to revise SET calculation
The rally enlarged the stock's market capitalisation to 600-700 billion baht, the SET's third largest by market value, affecting the main gauge's movement.
However, its share price plummeted for two straight days after the bank clarified that BTMU had not confirmed any plan to buy the local bank's remaining shares. BAY's shares tumbled 5.75 baht yesterday to close at 72.25 baht in trade of 1.21 billion.
"Any included on the trading alert list must meet all requirements," said Mrs Kesara, adding that BAY's free-float still meets listing requirements.
The Securities and Exchange Commission (SEC) requires listed companies to have a free-float of at least 15% to keep their listing status. She said the SET would continue its plan to revise the SET index's calculation forward following BAY's case.
In other news, the SEC eased investment rules to allow mutual funds for retail investors and private funds to invest in financial instruments issued by governments or companies in the Greater Mekong Subregion (GMS).
Under the revised rules, investment diversification will be relaxed while clear and adequate information on GMS instruments must be disclosed in the fund prospectus, especially investment policies, investment proportion and associated risks.
In addition, if fund investment in the GMS instruments exceeds 60% of the NAV, asset management companies must provide an explanation concerning the funds for investors and take necessary steps to ensure that investors learn of the associated risks prior to making the investment.