Businesses related to well-being are set to play a key role in driving Thailand's economy and contributing to the domestic capital market's development, with listed companies in the well-being segment representing 30% of the Stock Exchange of Thailand's total market capitalisation.
The SET says well-being not only plays a role in bettering Thai society, but it also acts as an important mechanism in economic growth. Listed companies involved with well-being have consistently shown positive performance and high growth potential.
Well-being companies listed on the bourse are large and diverse, ranging from agriculture and packaged foods to resorts. Production lines and supply chains embrace upstream manufacturers like farmers who sell products via wholesalers and retailers to consumers worldwide. The transport and logistics sector offers delivery and mass transport services to support tourism growth.
The sector also encompasses medical services, including experts and facilities that contribute to Thailand's image as a medical tourism hub.
At year-end 2018, 129 of the 605 SET-listed companies engaged in some sort of well-being business, with a combined market capitalisation of 5 trillion baht -- representing 30% of the bourse's total market cap.
Apart from adding value to the economy, well-being companies have been instrumental in creating skilled workers.
Most operators of such businesses are engaged in the service and manufacturing sectors. SET-listed firms clustered in the well-being segment employed 680,000 skilled workers, accounting for 48% of listed companies' total employees at year-end 2017.
"As the SET is committed to taking part in building a good society, the SET recently initiated the SET Well-Being (SETWB) Index, starting from April 1, as another alternative investment," the stock exchange said in a release.
After its early April launch, the index will be reviewed every six months.
The new index consists of listed securities in well-being-related sectors considered key contributors to Thailand's economic growth, such as agribusiness, commerce, fashion, food/drinks, healthcare services, tourism/leisure and transport/logistics.
The top 30 stocks with the highest market cap will be included in the SETWB Index.
Calculation of the first set of the SETWB Index will be based on information from Dec 1, 2017 to Nov 30, 2018.