SET to forward plan on listing of exchange

The Stock Exchange of Thailand (SET) will forward its demutualisation plan to the government while confirming that it has an option that does not include selling shares to the public.

Previously, Commerce Minister Kittiratt Na Ranong said he did not agree with the plan, signalling that it might be scrapped.
Meanwhile, SET President Charamporn Jotikasthira said last week that he had not had a chance to talk with either Kittiratt, who is also deputy
prime minister and head of the economic team, or Finance Minister Thirachai Phuvanatnaranubala on the fate of the plan.
He added that following the Thai capital development plan, the SET was slated to become a private company, selling its shares to the public and then listing the shares on the stock market.
"However, it depends on whether the government will follow the plan or not," said Charamporn.
He said that there were |many options for the demutua-|lisation of the exchange as either a listed or non-listed company. Listing would increase the com-petitiveness of the SET, as it |could raise funds for expansion. |But if the decision is made not to select the listing option, it would use its retained earnings for expansion.
Charamporn said there was no stipulation in law for SET reform. But under the plan under consideration by the Office of the Council of State, the SET would be required to sell its shares to the public. The law specifies that the market has to be liberalised and its monopoly abandoned. The goal is to increase the efficiency and flexibility of the exchange in response to competition.
He said the SET was now developing its new automated information and technology system and expects it to be operational next July.
The finance minister has called a meeting today of the economic monitoring committee, which comprises representatives from the SET, the Federation of Thai Capital Market Organisations, the Board of Trade and the Federation of Thai Industries.
The committee will discuss the economic situation both globally and domestically.

SET sees foreign capital

The market's record daily value without any help from big-lot transactions is a shade higher at Bt63.116 billion, registered in September 2010 when the court unlocked suspended industrial projects at Map Ta Phut in Rayong.
The highest-ever daily transaction value is Bt75 billion, but that included the big-lot transaction when the Shinawatra family sold its stake in Shin Corp for Bt73 billion back in 2006.
Yesterday's huge turnover pushed the Stock Exchange of Thailand Index up by 48.80 points, a 4.69-per-cent rise, to 1,090.28 points.
The landslide poll victory by the opposition Pheu Thai Party convinced investors that Thailand would soon welcome in a new government, while some returned to the market after gains in overseas markets last week due to Greece's success in tapping a new loan facility from the International Monetary Fund.
"The Thai market performed extraordinarily yesterday, reflecting the strong confi?dence of foreign investors. The election on Sunday was com?pleted peacefully, and the majority win will pave the way for quick government formation," said Patteera Dilokrungthirapop, CEO of DBS Vickers Securities (Thailand) and president of the Association of Securities Companies.
HSBC Thailand chief mar?kets strategist Parson Singha said the election result had been better than expected for investors, driving the SET Index up and strengthening the baht.
The baht gained 0.34 per cent to 30.46 against the US dollar as of 5.30pm yesterday, because of the capital inflow into the stock market as well as the dollar weakening against the euro. "Investor confidence is on the rise as no violence is expected [following the election]," Parson said.
Investors turned their atten?tion to stocks linked directly or indirectly to the Shinawatra family, as Yingluck Shinawatra, the sister of ousted prime minister Thaksin Shinawatra, is tipped to become the next prime minister.