GMO-Z com Securities (Z.com) has confirmed that it will continue to operate as usual in Thailand, although the Thai unit is reviewing margin loan service amid a significant drop in trading value of the Stock Exchange of Thailand (SET).
GMO-Z com Securities (Thailand), a unit of the Japanese securities brokerage, said on the company's website that it is still open for business as usual, following recent media reports that it would shut down the operation.
"Following the news reports, there have been several inquiries from customers who have concerns about the matter. The company would like to confirm that we are still operating normally," read the company's announcement on its official website and Facebook page.
Pichet Sithi-Amnuai, chairman of the Association of Thai Securities Companies (Asco), said small securities firms have suffered from a continuous decline in the SET's trading value over the past couple of years.
"That has affected the income of Asco's members and small companies may suffer with losses," he said in response to the Bangkok Post's inquiries regarding GMO-Z com Securities (Thailand).
"The news [about the Thai unit of Z.com] stirred confusion among investors. Nonetheless, it has been confirmed with the association that no members would shut down their operations," said Mr Pichet.
According to SET data, the average daily trading value decreased from 88.4 billion baht in 2021 to 56.2 billion baht in 2022 and 53.3 million last year, dragged down by economic conditions and the financial performance of listed companies.
From January to April, the value dropped further to 44.4 billion baht. Prior to the emergence of Covid-19, daily trading value stood at nearly 100 billion baht, he noted.
Mr Pichet said the long-term survival of securities companies requires each one to adjust their business strategy.
"Normally, companies manage business risks by diversifying into new business to supplement income from the brokerage, which is their main business. However, new businesses may take time to develop before they are able to generate a profit."