Published On: Wed, Jul 16th, 2014

SET Market Report For H1 2014

Kesara Manchusree, President, SET -

Kesara Manchusree, President, SET –

Q2 daily average trading value up 32 pct quarter-on-quarter to USD 1.26 bln

Market cap at USD 415 billion, up 16 pct from end of last year

H1 Derivatives trading up 38 percent to 93,834 contracts per day

Foreign investors sold a net USD 1.28 bln in January-June

 

The Stock Exchange of Thailand (SET) securities daily average trading value in the first half of this year was at THB 35.6 billion (approx. USD 1.11 billion) However, the trading value recovered 32 percent in the second quarter after the National Council for Peace and Order (NCPO) took control of the country without any violence in the second quarter, while investment sentiment regained by a series of economic recovery policies which were expected to revive investors’ confidence.

The SET main index ended June at 1,485.75 points, up 14.40 percent from end-2013. It rose by 4.95 percent from end-May. Foreign investors were net sellers in the second quarter of this year, selling USD 636 million. They sold a net USD 1.28 billion of Thai stocks in the first six months.

Combined average daily trading value of SET and Market for Alternative Investment (mai) was at THB 40.64 billion (USD 1.26 billion) in the second quarter, however, an average number dropped to THB 35.6 billion in the first half of this year, while daily trading volume of derivatives surged to 93,834 contracts per day, up from 68,017 contracts in 2013.

In June, a combined average daily trading value was at THB 48.6 billion, up 17.8 percent from a month ago, in spite of investors’ dampened sentiment affected by QE tapering of the U.S. central bank.

Key highlights for H1

Securities

  • Market capitalization of SET was at THB 13.36 trillion (USD 411 billion) in the end of June, up 16.2 percent from end-2013, while market valuation of mai was at THB 236.76 billion (USD 7.35 billion), up 33.5 percent from the end of last year.
  • The end-June forward P/E ratio for SET rose year-on-year to 14.46 times, while mai’s forward P/E ratio increased to 23.46.
  • The dividend yield of SET ended June at 3.11 percent, up from a year earlier, while mai’s was down at 1.46 percent.
  • Listed companies raised funds through equity worth a combined THB 62.65 billion (USD 1.93 billion) in the second quarter, threefold the past quarter, of which THB 49.04 billion was raised from initial public offerings from nine companies and three property funds, and THB 13.61 billion from the secondary market. However, the total first-half fundraising was at THB 80.50 billion, down 53.26 percent from a year earlier.

Derivatives

  • Second-quarter derivatives trading volume soared 1.4 times from the previous quarter, and up 0.7 times from a year earlier to an average of 133,155 contracts per day, supported by rises of SET50 index futures and single stock futures.
  • Night trading session of commodity futures accounted for 49.33 percent of the total trading volume in the second quarter, up from 45.74 percent in the first quarter, resulting the proportion of night trading at 47.5 percent of the total, down from 51.27 percent a year earlier.

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