Stock Exchange of Thailand announces its 2014 strategy
The Stock Exchange of Thailand (SET) has announced its 2014 strategy in
pushing for sustainable growth within the next 3 years.
According to the SET, beginning next year it will focus on newly registered
companies and quality investors in order to cope with the market’s
volatility. Furthermore, it will bridge investment opportunities within the
Greater Mekong Subregion (GMS) in order to stimulate growth within the
region.
Stock Exchange of Thailand President Jarumporn Chotikasatien stated that
2014 would be a challenging year as there would be both internal and
external uncertainties in the market place.
Jarumporn went on to say that efforts of hard work from 2013 have paid off,
making Thailand one of the leading stock markets in the region; with higher
average daily trading volume than in any other bourse in the ASEAN region.
The new ‘SET Connect’ trading platform will be ready in the middle of next
year in order to further develop trading technologies and provide better
convenience for investors by combining the futures exchange with the stock
exchange into one platform. (NNT)
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Special Report: Prolonged protests set
to damage already fragile Thai economy
The People’s Democratic Reform Committee (PDRC)’s latest
announcement of more protests in January has raised concerns that the
prolonged protests will further hurt the country’s economy and hamper
growth.
The Pheu Thai Party claimed that the anti-government rallies have so far
caused more than 70 billion baht in economic damage to the country. The
party warned that if the protests were prolonged, the country’s economy,
particularly the tourism sector, would be severely affected and economic
growth curtailed. International confidence in Thailand would also be
extensively eroded if the general election failed to take place on February
2 as scheduled.
Foreign investors in the Thai stock market have reportedly sold off more
than 200 billion baht worth of shares since the protests began.
Political protests were already having an impact on Thailand’s tourism
industry, which accounts for around 7 percent of the gross domestic product.
Meanwhile, a number of nations have issued travel advisories, warning their
citizens against traveling to Bangkok, a key hub for the tourism industry.
The tourism sector, which grew strongly in 2012 and 2013, will likely face a
serious setback if the political protest is protracted.
Many international analysts have noted that recent negative investor
sentiment towards Thailand cannot be fully blamed on the political tensions.
Thailand suffered sharp capital outflows amid the tapering panic earlier
this year, prompting investors to sell off around 28 percent of their
holdings from late May to late August, while deteriorating economic
fundamentals have also put investors off. To make matters worse, the Thai
economy unexpectedly slipped into recession in the second quarter,
contracting 0.3 percent on the previous quarter, as exports and domestic
demand faltered. The country is also running a current account deficit,
leaving it exposed to the long-awaited tapering of the Federal Reserve’s
stimulus program.
The current turmoil also coincides with the rise of neighboring Myanmar and
the Philippines, both of which are enjoying a period of political stability
and quickening growth.
Moody’s Investors Service previously commented on the situation, saying that
the protests will likely further undermine investor confidence. Prolonged or
escalating protests will adversely affect foreign investment and tourism,
and exacerbate delayed public infrastructure investment, which will weigh on
Thailand’s future growth in 2014 and beyond.
With the country facing political deadlock, rebuilding foreign investors’
confidence will be one of the top priorities for the Board of Investment in
its action plan next year. The Industrial Promotion Department has
downplayed concerns about unrest, saying businesses have survived many
crises in the past.
Despite previous reports indicating ongoing protests hampered business
sentiment and damaged the country’s tourism, mall operators in Bangkok
reported a rise in profit as demonstrators flocked to stores near rally
sites. Central World, Paragon shopping complex as well as Terminal 21 have
reaped benefits from the recent gathering of anti-government protesters
given that rally sites are often situated near malls and department stores
along Sukhumvit Road.
On December 22, a number of stages were set up across Bangkok in a bid to
further pressure the current administration to resign. Skytrain operator
Bangkok Metro Public Company Limited (BMCL) reported a massive rise in
passenger numbers during rallies as members of the public opted to use
public transport to avoid traffic congestion caused by protests. During the
weekends, BMCL said the figure was close to 220,000 per day, also buoyed by
year-end shopping sprees.
The MRT subway operator also reported a 60% rise in the number of commuters
on December 22, recording over 300,000 trips on the day; 60% higher than the
average 170,000 trips on weekends over the first 10 months of 2013.
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