SET eyes greater international exposure

The Stock Exchange of Thailand (SET) is planning greater exposure in the international media as part of the bourse’s strategy to attract new foreign investors and securities issuers.

President Kesara Manchusree said the SET will continue its strategy of expanding its investment base to lure new foreign investors.

Mrs Kesara said the SET will provide information to investors who are beyond notable investment gateways, such as the US, the UK, Hong Kong and Singapore, because these markets already have several brokerage firms to arrange investment roadshows and bring listed companies to meet with foreign institutional investors.

“We will open ourselves more to the international media, including online and print media in foreign countries, as this will help us reach wider coverage of both investors and issuers,” she said.

Retail investors make up 50% of total stock traders, while brokerage firms and institutional investors account for 40% and foreign investors represent 10%.

The SET’s partnership with local media has been quite successful, but the bourse has less exposure in the international media and there is little information and updates about Thailand’s capital market in the international media compared to other regional capital markets, said Mrs Kesara.

“Many foreign investors have told us they did not know Thailand’s capital market has sound fundamentals as the information available in the international media is limited,” she said.

The SET and the Thailand Futures Exchange (TFEX) have been invited to speak at many international seminars and symposiums because of the organisations’ respectable profiles and fundamentals, she said, adding that the bourse will seek opportunities to visit with international media during those events.

In addition to the SET’s international media plan, investment roadshows and the quality of companies planning to list on the SET remain the major focus for capital market development, said Mrs Kesara.

TFEX president Rinjai Chaiyasut said modern technology such as webcasts has enhanced the SET’s exposure among international media, so the bourse is planning to incorporate the latest technological innovations to reach out to foreign fund managers and international media without having to travel abroad.

“Expansion of the foreign investor base will help to increase the number of market participants and boost market liquidity,” Ms Rinjai said.

Foreign investors make up 10-15% of trading volume on the TFEX.

Most foreign investors preferred futures products such as SET50 futures.

Foreign investment accounts for 25% of the SET50’s total, rising from 18% two years ago.