Published On: Fri, May 14th, 2010

Thai Bourse Reports Trading Activity and Performance Overview for April

In April, The Stock Exchange of Thailand (SET) Index was rather volatile, ending the month at 763.51, down 3.11% from the previous month due to political unrest. This downturn was in contrast with other regional markets indices, which tended to rise due to continuous fund flows from international investors. The Thai bourse’s market capitalization at end-April was THB 6.18 trillion (USD 0.19 trillion), down 3.08% in line with the SET Index’s decline.

The combined average daily turnover for the SET and the Market for Alternative Investment (mai) was THB 24.94 billion (USD 0.77 billion), and was stable at this high level throughout April. The average daily turnover for April was close to that of March. After being net buyers for two months, foreign investors became net sellers in April, with a net sell position of THB 4.09 billion (USD 0.13 billion). Foreign investors’ share of trading increased to 24.58% of total trading value – the highest in 13 months.

Local institutions and proprietary traders were also net sellers, while local investors were net buyers. Looking at trading value of securities categorized by market capitalization, the top-ten securities increased to 45.88% of total trading — the highest in nine months.

For derivatives, the April daily average trading volume was 19,427 contracts, up 17.09% from March due mainly to the higher volume of SET50 Index futures and single stock futures.

In terms of funds raised, listed companies raised equity of THB 125.61 million (USD 3.89 million), all through seasonal equity offerings (SEOs), consisting of THB 85.80 million (USD 2.66 million) by Evolution Capital PCL (E). Total funds raised during the first four months of 2010 were THB 10.74 billion (USD 0.33 billion), 10.72% down from same period in 2009.

1.Performance Overview
At end-April, the SET Index closed at 763.51, a decline of 3.11% month-on-month, due to domestic unrest. During April, the index rose during the first week of the month due to economic fundamentals and continuous fund flows from international investors but then declined. The SET Index’s drop contrasted with movements of other regional market indices, which rose on the back of improved economic fundamentals -the Q1/2010 GDP annualized growths of China, South Korea, and Singapore were announced to be 11.90%, 7.80%, and 13.10%, respectively (source: Bloomberg), attracting international fund flows. The drop in the SET Index resulted in the Thai bourse’s forward P/E ratio declining to 11.3 times, from 11.9 times in March, lower than the average of 13.5-16.8 times of other regional markets.

The mai Index ended April at 205.13, a drop of 3.44% month-on-month. The Thai bourse’s market capitalization at end-April was THB 6.18 trillion (USD 0.19 trillion), down 3.08% in line with the SET Index’s decline.

2.Trading activity
April’s trading activity was close to that of March and was quite stable at a high level, especially during the first through third weeks of the month before going down during the final week. The total trading in April for SET and mai combined reached THB 408.83 billion, while daily average turnover was THB 24.94 billion (USD 0.77 billion). This figure was a 0.07% dip from the previous month, yet it was 58.72% up from March 2009 and higher than THB18.23 billion (USD 0.57 billion) per day in 2009.

In terms of trading value by customer type, local investors were net buyers with a net buy position for April of THB 9.70 billion (USD 0.30 billion), while the other categories were net sellers. After being net buyers during February-March, foreign investors switched to become net sellers in April, with a net sell position of THB 4.09 billion (USD 0.13 billion). Local institutions and proprietary traders were also net sellers, with THB 4.33 billion (USD 0.13 billion) and THB 1.27 billion (USD 0.04 billion) net sell positions, respectively. Foreigner’s share of trading increased to 24.58% of total trading value – the highest in 13 months, up from 21.20% in March.

In terms of trading value by industry group in April, the proportions of the Energy & Utilities, Banking, and Petrochemicals & Chemicals Sectors slightly increased to 31.70%, 26.67%, and 8.46% respectively. The proportion of the Food and Beverage Sector increased to 4.49% because Charoen Pokphand Foods (CPF) moved to this sector from the Agribusiness Sector in April 1.

Looking at trading value by market capitalization, the top-ten securities (in terms of market capitalization) accounted for 45.88% of total trades – the highest in nine months since August 2009, up from 38.32% in March. In April, the proportion of top 31-50 securities plunged to 6.86% from 12.43% in March.

3.Active trading accounts
In March, the number of active trading accounts reached new high at 146,445 accounts after a four-month down trend for four months. Of all trading accounts in March, 25.70% were active, with an average trading value of THB 3.75 million (USD 0.12 million), up from 19.35% and THB 2.59 million (USD 0.08 million) in February.

The total of active Internet accounts was also increased to 54,650 accounts, up 28.46% from February. March’s internet trading value was THB 118.41 billion (USD 3.67 billion), amounting to 21.57% of total trading value, up slightly from 20.35% in February.

4.Overview of the derivatives market
In April, daily average derivatives trading volume was 19,427 contracts, up 17.09% over March’s figures due mainly to SET50 Index Futures and Single Stock Futures, whose volume increased by 14.56% and 62.46% respectively. Total trading volume reached 349,679 contracts, which was 4.20% up month-on-month. In addition, trading in SET50 Index Options reached 13,942 contracts per day – the highest in 11 months since the 14,905 contracts of June 2009. Trading volume of gold futures was 2,483 contracts, or 16.63% up from March, due to the rise in gold prices at USD1,175.25 per Troy ounce at end-April from USD 1,109.50 per Troy ounce at end-March.

5. Overview of funds raised
In April all funds raised by listed firms was through seasonal equity offerings, totaling THB 125.61 million (USD 3.89 million). This amount was 95.61% down from month-on-month, yet 75.20% up over April 2009. THB 85.80 million (USD 2.66 million) was raised by Evolution Capital PCL (E) private placement and THB 24.17 million (USD 0.75 million) by PTT Aromatics and Refining PCL (PTTAR), using warrants. Total funds raised during the first four months of 2010 came to THB 10.74 billion (USD 0.33 billion), which was 10.72% down from same period in 2009.

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