Bourse to increase capitalisation to 150% of GDP
The Stock Exchange of Thailand (SET) plans to increase its market capitalisation to reach 150% of Thailand’s GDP by 2021 as part of the bourse’s five-year business plan.
Increasing the number of new listings and building up market capital of existing listed companies from current share prices will be the two main methods to increase the bourse’s market capitalisation, said SET president Kesara Manchusree.
The SET plans to increase its market size through issuing new IPOs, targeting 280 billion baht for newly listed firms this year, said Mrs Kesara. Existing listed companies have raised an average of 200 billion baht from the bourse per year.
The stock exchange’s IPO target for 2018 is expected to be similar to this year’s goal, she said.
The Thai bourse’s market capitalisation stands at around 16.5 trillion baht, approximately 112-115% of the country’s GDP. The SET’s five-year business plan was approved by the cabinet on Sept 12.
Mrs Kesara said the SET is studying a trading programme among stock markets in neighbouring countries, namely Cambodia, Laos, Myanmar, and Vietnam (CLMV), to provide investment information and trading systems among stock markets in these countries. The study is expected for completion next year.
“It [the trade platform] may be a trading linkage programme among the CLMV countries. Since the CLMV stock markets are still very small in size, we are interested in helping these markets generate greater financial liquidity,” she said.
Such plans have to, however, be confirmed with CLMV authorities again, she added.
Mrs Kesara said the SET is also studying launching “LIVE”, a platform for startup trading based on the blockchain concept.
Since startup businesses have high investment risk, investors using this platform will have to be accredited and have shrewd investment knowledge, she said.
LIVE is expected to be launched by this year’s final quarter as the platform’s approval is being considered by the Securities and Exchange Commission, said Mrs Kesara.
She said the SET plans to build up market growth sustainability in the long run by encouraging listed firms to respond align with global corporate social responsibility and sustainable development trends.
The SET has 17 listed firms added on the Dow Jones Sustainability Index (DJSI).
“The SET aims to have two new firms list on the DJSI every year,” Mrs Kesara said.