Published On: Thu, Jun 12th, 2014

Thai Bourse Market Report For May 2014

Kesara Manchusree, President, SET

Kesara Manchusree, President, SET

The Stock Exchange of Thailand (SET) securities trading value in May rose from a month ago, but dropped from a year earlier, while foreign investors were net sellers of Thai shares worth USD 1.12 billion, mainly due to domestic political situation. However, after the National Council for Peace and Order (NCPO) took control of administrative power in Thailand on May 22 and announced the economic roadmap to help boost the economy on May 26, such as the controversial rice pledging scheme payment management and infrastructure investment, investor confidence has been restored in drawing funds back to the Thai market in the last week of May. This was led by institutional investors and retail investors.

The SET main index ended May at 1,415.73 points, up 9.01 percent from end-2013. Foreign investors reversed to be net sellers in May, selling THB 35.78 billion (approx. USD 1.1 billion). They sold a net THB 40.54 billion (approx. USD 1.23 billion) of Thai stocks in the first five months of 2014.

Combined average daily trading value of SET and Market for Alternative Investment (mai) was at THB 41.26 billion (USD 1.29 billion), up 32.2 percent from a month ago, and down 29.6 percent from a year earlier, while daily trading volume of derivatives rose 1.5 times from a month ago at 137,261 contracts per day, mainly due to reducing the existing SET50 futures to be one-fifth.

Key highlights for May

Securities

  • Market capitalization of SET was at THB 12.67 trillion (USD 396 billion), up 10.23 percent from the end of 2013, while market valuation of mai was at THB 204.67 billion (USD 6.40 billion), up 15.4 percent.
  • The forward P/E ratio for SET was at 13.75 times, up from 13.66 a month ago, while mai’s forward P/E ratio increased month-on-month to 20.71, from 16.60.
  • The dividend yield of SET remained at 3.26 percent, same as in April, while mai’s was down at 1.69 percent.
    Foreign investors were net sellers in May, selling a net USD 1.1 billion. From January this year, they have sold a net USD 1.23 billion.
  • Listed companies raised funds through equity worth a combined THB 2.92 billion (USD 91.28 million) in May, of which THB 2.10 billion was raised from an initial public offering (IPO) of 2 companies and THB 818 million from the secondary market.

Derivatives

  • Derivatives trading volume jumped 1.5 times in May from a month earlier to an average of 137,261 contracts per day, mainly due to the launch of mini SET50 Futures on May 6, designed to reduce its contract size to be one-fifth of the current SET50 futures, as well as an increase in the trading volume of single stock futures.
  • Night trading session of commodity futures accounted for 53.47 percent of the total trading volume, up from 47.78 percent in April.

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