jimmyjjohn

The Stock Exchange of Thailand is drawing up its five-year strategic plan, which targets more foreigners and retail players for long-term investment. Pakorn Peetathawatchai, executive vice president and head of corporate strategy and finance at the SET, said the 2013-17 plan would be a collaboration with other organisations including the Association of Thai Securities Companies and the Association of Investment Management Companies to ensure the long-term sustainability of the market structure. "The Thai stock market has remained very satisfactory in the first four months. What we have to do is to keep this performance for the long term with more stability. We have had discussions to some extent and expected to finalise the plan soon," Pakorn said. The basic strategy is to retain retail investors, who account for 65 per cent of total investors in the Thai bourse, for as long as possible with consistent investment. Historically, of 100 new accounts, about 50 have been active in trading. As investors change their picks from SET50 to SET100 or non-SET 100, more analysis about smaller stocks is required to support the investors of these stocks. The proportion of retail investors in the stock market has also recently increased from 55 per cent to present 65 per cent because of more new entries. Foreign and domestic institutional investors have also participated more. The SET and related organisations will strive to add more Thai stocks to the MSCI ex-Japan index as most long-term foreign investors focus on the MSCI as a reference. Currently, 22 Thai stocks are included in the MSCI. "Having more Thai stocks in the MSCI will help boost liquidity, as more will invest. Late last year, the Thai stock market had a weight of 3.2 per cent in the MSCI, and now the weight is 3.7 per cent, adding liquidity of Bt2 billion to Bt3 billion," Pakorn said. Late this month, the MSCI will be reviewed and about five or six more Thai stocks should comply with the index's requirements.