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Stock Exchange of Thailand October 2011 Market Report

The Stock Exchange of Thailand’s (SET) trading volume fell in October in both securities and derivatives as mounting fears of Euro zone debt problems hit markets globally, while domestic sentiment was also dented by concerns over Thailand’s economy due to the flood crisis.

However, foreign investors became net buyers of Thai shares in October, after two straight months of net selling, as easing concern about European debt crisis and improving U.S. economic data has boosted the investment climate in late October, spurring fund flows into the Asian region.

Combined average daily trading volume of the SET and the Market for Alternative Investment (mai) was at THB 26.04 billion (approx. USD 846 million) in October, while daily trading volume of derivatives eased 20.79 percent from a month ago at 50,531 contracts.

However, there were strong inflows from foreign investors in October due to a rebuilding of exposure to emerging markets. Foreign investors bought Thai shares worth a net THB 30.84 billion (USD 1 billion) in October, after they dumped Thai stocks for two consecutive months, pushing the SET index up 6.39 percent from end-September.

Key highlights for October

Securities
-Market capitalization was at THB 7.99 trillion (USD 259 billion), up 6.46 percent from September, and market valuation of the mai was at THB 66.01 billion (USD 2.14 billion), down 0.35 percent from the previous month.
-Combined average daily trading volume of SET and mai was at THB 26.04 billion, down 24.61 percent from a year earlier. In the first ten months, the total trading volume increased 6.60 percent from the same period of last year to THB 30.98 billion.
-Forward P/E ratio for the SET was at 11.21 times, up from 10.35 in September, while mai’s forward P/E ratio fell to 8.63 times from 8.77 in the previous months.
-Dividend yield of the SET maintained its high level at 4.13 percent at end-October and mai’s dividend yield was at 3.73 percent.
-Foreign investors bought a net THB 30.84 billion in October, reducing the valuation of their net selling to THB 4.79 billion (USD 155 million) since the start of this year. They accounted for 22.84 percent of the total trading volume in the first ten months, compared with 18.40 percent in 2010.
-The SET index fell 6.39 percent month-on-month at the end of Ocotber. Since the start of this year, the index has fallen 5.62 percent, in line with declines of other markets in the region.
-The proportion of securities trading of the country’s top ten biggest stocks rose from a month ago, boosted by trading of banking and petrochemical and chemicals.

Derivatives
-Average daily trading volume fell to 50,531 contracts in October, down 20.79 percent from the previous month, with volumes of SET50 index options and gold futures all declining in the month. However, trading volume of SET50 index
futures hit a record high in October since it started trading.
-Trading in the night session has shown good growth since it started operating in June. In October, trading volume of gold and silver futures in the night session accounted for 38.53 percent of the total trading volume of these two
products.

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