Asia Plus Group Holdings will focus on continuously diversifying its business to wealth management to generate additional income to investors amid a sluggish Thai stock market that could force more securities firms to shutter their businesses.
Kongkiat Opaswongkarn, founder and chief executive of Asia Plus Group Holdings (ASP), said the Stock Exchange of Thailand (SET) has been continuously sluggish, with the trading value decreasing from an average of 50 billion baht in 2024 to around 30-40 billion baht year to date, while competition for trading fees has intensified.
Investors prefer to trade stocks online, with very low trading fee rates, causing securities companies' profits to continually decrease.
It is expected that more securities companies will close or merge their businesses even though a merger does not significantly increase turnover as trading accounts are often duplicated because investors open trading accounts with multiple brokers, he said.
There is a problem of costs due to "too many marketing staff", while new technology has increased trading via online platforms, Mr Kongkiat noted.
"Securities companies will have to change their business models and diversify their income sources to compensate for the reduced commissions. Those who cannot adapt quickly will suffer losses while the stock market sentiment remains bearish."
In his view, marketing staff must be shifted to sell other wealth products and alternative assets in addition to stocks, so investors' portfolios are well balanced.
"ASPS has been preparing for the current situation through business diversification to generate additional income over the past several years. Therefore, we have been less affected than the industry average."
For example, Asia Plus Fund Management aims to increase its assets under management (AUM) by another 30 billion baht this year. ASP has outstanding assets of investors in both stock accounts and asset management firms of more than 100 billion baht.
In addition, ASP is the most active broker among the securities company group in distributing debt instruments, with a market share of roughly 13.7% of the assets in this group of around 180 billion baht.
Asia Plus Fund Management is expected to launch a new cryptocurrency fund in March. It will invest in both Bitcoin and altcoins, he added.
Diversifying the revenue base to investment products that are in line with market directions, covering a variety of industries, assets and geographies is among Asia Plus's five strategies this year. The rest are a customer-centric approach, data management initiatives, digital transformation powered by AI and employee upskilling.
Consulting business operated by Asia Plus Consulting also plays an important role in driving stable business growth of corporate clients for transactions of private placement fundraising, mergers and acquisitions, and debt restructuring, for clients to achieve their business goals.
In a related development, Tisco Asset Management aims to grow its AUM by 5-6% this year after the company for the first time achieved a total AUM of 400 billion baht in 2024.
Managing director Saharat Chudsuwan said Tisco last year reported a total AUM of over 406 billion baht, up 4% from the previous year. Despite the significant achievement, the growth in AUM is lower than the five-year average of 7% per annum.
Last year, Tisco introduced 24 funds and at least five new funds would be launched in 2025, especially trigger funds.
The US market is the main focus given President Donald Trump's announced policies of reducing corporate income taxes to drive the US stock market and the overall economy.