Capital Markets
From The Report: Thailand 2017
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The Stock Exchange of Thailand has outperformed its regional peers in liquidity and initial public offering growth in recent years, rising to become the best-performing stock market in the Asia-Pacific region in 2016. The bond market has also been a standout performer, despite concerns over rising numbers of short-term bond defaults, with the segment witnessing an influx of foreign capital during the first months of 2017, following a year marked by significant geopolitical volatility and rising capital outflows. Listed companies remain profitable and derivatives market growth has also been positive, bolstered by rising trade in stock and gold futures. While foreign investment in the securities market is forecast to remain flat in 2017, investment in the bond market should continue to rise, with Thailand increasingly viewed as a safe haven from currency volatility. This chapter contains interviews with Kesara Manchusree, President, The Stock Exchange of Thailand; Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission; and Pote Harinasuta, CEO, One Asset Management; and a viewpoint from Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company.

Articles from this Chapter

Overview

Rising star: Anticipated IPOs and a plan to diversify offerings will allow the bourse to grow
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The Stock Exchange of Thailand (SET) has outperformed its regional peers in liquidity and initial public offering (IPO) growth in recent years, rising to become the best-performing stock market in the Asia-Pacific region in 2016. The bond market has also been a standout performer, despite concerns over rising numbers of short-term bond defaults, with the segment witnessing an influx of foreign capital during the first months of 2017, following a year marked by significant geopolitical volatility…

Interview

Aiding and expanding: Kesara Manchusree, President, Stock Exchange of Thailand (SET), on factors shaping local and regional markets
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Interview:Kesara Manchusree How will the blockchain-based marketplace deepen capital raising opportunities for start-ups? KESARA MANCHUSREE: At present, the start-up segment in Thailand is still in an early stage. Many businesses are not qualifying for traditional capital raising mechanisms due to several factors. Still, there is quite a lot of demand in Thailand to invest in start-ups, as they are recognised as a future growth industry. SET has already taken many steps to promote start-up…

Analysis

Make an offer: A significant number of new IPOs are expected in 2017
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The Stock Exchange of Thailand (SET) missed its targets for initial public offerings (IPOs) in 2016 after two deals were delayed due to a change in accounting standards under the Securities and Exchange Commission’s (SEC) financial reporting requirements. Despite the temporary contraction, IPO growth is set to accelerate in 2017, with IPO attractiveness buoyed by triple-digit growth in share prices at several recent listings. Several deals that were delayed are also expected to move forward…

Interview

Primary focus: Rapee Sucharitakul, Secretary-General, Securities and Exchange Commission (SEC), on shaping new regulations and stabilising the flow of capital
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Interview:Rapee Sucharitakul How can capital flows to Thailand be stabilised? RAPEE SUCHARITAKUL: Thailand has always been very mindful of hot money and capital flight, which in the past flooded the Thai market and caused some volatility. The fact that our capital market is relatively small in comparison to the rest of the world means that every time money flows inwards, there lies the possibility of a bubble effect. Global events create a rush to and from markets, which can create volatility,…

Analysis

The right note: The bourse hopes to boost and diversify the sector by offering structured notes
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The local authorities are moving to liberalise restrictions on foreign investment in structured notes, permitting investors to buy Thai equity-linked notes that are linked to individual foreign companies, as well as foreign currencies. The changes should also help Thailand compete with the region’s primary private banking hubs Singapore and Hong Kong, as well as capitalising on growth opportunities in the Greater Mekong subregion which includes the high-growth markets of Cambodia, Laos,…

Analysis

Centre stage: Recent efforts are focused on building a regional financial hub
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An initiative driven by Thailand to develop closer financial integration and cooperation among the Greater Mekong Subregion countries could bolster Bangkok’s position as a capital markets and banking centre. Thailand’s campaign to strengthen fiscal and economic ties with its near neighbours reached a new level in June 2016, when it hosted a two-day summit for Cambodia, Laos, Myanmar, Vietnam and Thailand (CLMVT). Entitled CLMVT: Prosper Together, the event focused on developing a platform…

Viewpoint

Ideal opportunity: Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company, on the country’s growing competitiveness
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Viewpoint: Chaipatr Srivisarvacha As the hub of ASEAN, Thailand has good prospects with significant growth potential. A large current account surplus and strong international reserves make the country less susceptible to external shocks, while low inflation and a low unemployment rate indicate relatively strong economic fundamentals. Thailand is in a very competitive position, ranked 34th among 138 countries, ahead of other ASEAN nations except Singapore and Malaysia, according to the World Economic…

Interview

Going forward: Pote Harinasuta, CEO, One Asset Management, on the future of Thai markets and moves to expand overseas
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Interview: Pote Harinasuta How will volatility in global markets impact short-term capital flows to and from Thailand? POTE HARINASUTA: From a Thai perspective, I would consider 2017 to be a year of externalities, as there are not many major factors that could be affecting the market. Companies have been growing well, exports have picked up, and there is strong government spending on infrastructure projects lined up for the next few years. From a domestic perspective things are on the right track,…

Analysis

Key drivers: Domestic economic boosters are returning to the markets
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The Thai equity market is one of the most developed and liquid capital markets in Asia. In 2016 the Thai stock market had share turnover velocity of 62%, the highest among the ASEAN 5 (Thailand, Singapore, Malaysia, Indonesia and the Philippines) and the second largest in terms of market capitalisation after Singapore at $437bn, or 117% of GDP. Supported by regulator policies to enhance the capital market, the Stock Exchange of Thailand (SET) has grown rapidly over the past decade, as evidenced by the number of listed companies increasing by 28% to 656 at the end of 2016, compared to 513 companies in 2006. Meanwhile, market capitalisation…

Analysis

Moving up: A positive outlook for the futures market
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The Thailand Futures Exchange (TFEX) has been operating under the Derivatives Act of B.E. 2546 (2003), which allows the TFEX to trade futures, options and options on futures where the permitted underlying assets are: equities, including stock index and individual stocks; debt instruments, meaning bonds and interest rates; commodities, precious metals and base metals; and others indices, such as exchange rates, commodities indices and others as announced by the Securities and Exchange Commission. Futures On Offer As seen in the graph above, the total market daily average volume of the TFEX has increased significantly since 2011. SET50…