SET posts 7.6% drop in 2014 profit

The Stock Exchange of Thailand yesterday reported a 7.6% decline in earnings for 2014, mirroring the prolonged impact of political uncertainty on the Thai economy.

The SET announced a net profit of 1.53 billion baht, down 7.6% from a year earlier, with total revenue from operations of 4.2 billion baht, down 2.5% from 2013.

Average trading volume for equity funds fell and the derivatives business generated lower revenue.

But revenue from investment rose by 6.1% to 871 million baht, in line with the rising yields of equity funds.

The bourse saw operating expenses rise by 3.6% to 3.08 billion baht, driven by higher custodial fees, costlier technology and the depreciation of systems such as the trading platform and settlements.

The SET’s total investment portfolio reached 16.5 billion baht, up from 15.8 billion baht a year earlier, consisting of various assets such as deposits, government bonds, corporate bonds and others through mutual funds.

A slight change in the asset mix reduced the portion of due-date bonds and securities available for sale and increased the weighting in infrastructure funds to capture higher yields in secured assets.

The Securities Investor Protection Fund (SIPF) rose by 5% to 698 million baht on a greater levy from SIPF members, higher returns and an increase in SIPF membership.

The SET’s mutual funds were valued at 22.2 billion baht as 2014 drew to a close, up 7.7% from a year earlier.

Liabilities fell to 12.2 billion baht, down 8.8%.

Cash on hand stood at 1.41 billion baht, down 24.1% from the previous year.

Total asset value reached 34.5 billion baht, up 1.2%.