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Dr. Pakorn PeetathawatchaiChief Strategy and Finance OfficerThe Stock Exchange of Thailand February 2014
ThailandOpportunities Amid Challenges: Focusing on Fundamentals
Opportunities amid challenges: focusing on fundamentals
• Thailand’s growth potential remains promising• Exports continue as a bright spot, supported by stronger global and regional demand • Growth opportunities through intra-regional trade and investment connectivity
• Thai listed companies continue to be resilient
• Thailand’s capital market and SET play a major role in financialconnectivity
Source: Office of the National Economic and Social Development Board , Department of Tourism, Bank of Thailand, IMF’s World Economic Outlook
(%YoY) 2012 2013 2014f
GDP Growth 6.4 2.9 3.0-4.0
- Private consumption 6.6 0.2 1.4
- Private investment 14.6 -2.8 3.8
- Public consumption 7.4 4.9 2.0
- Public investment 8.9 1.3 0.3
- Export value of goods (USD) 3.2 -0.2 5.0-7.0
- Import value of goods (USD) 7.8 -0.4 5.7
- Number of tourists (%YoY) 16.0 19.6 3.0
- Number of tourists (million) 22.3 26.7 27.5
• The Thai economy has shown impressive resilience to shocks. The economy is expected to grow at 3 percent in 2014 and will continue to expand at a healthy pace of 4-5 percent over the medium-term.
• Short-term growth will come from: - Exports to continue as a key driver- Planned infrastructure investments to boost the country’s potential.
Thailand: Medium-term GDP Growth forecast
0.1
6.4
2.9
3.5
54.4 4.7 4.7
0
1
2
3
4
5
6
7
2011 2012 2013 2014f 2015f 2016f 2017f 2018f
(%)
3
Thailand’s growth potential
ActualForecast*
Note: *2014 mid-range forecast by NESDB, 2015 onward forecast by IMF
1/ International reserves and net forward positionsSource: Bank of Thailand/ IMF's World Economic Outlook Database
External debt and international reserves (billion USD)
60
140
190
0
50
100
150
200
250
2005
2006
2007
2008
2009
2010
2011
2012
Nov-1
3
Dec-1
3
Short-termGross External DebtNet international reserves 1/
CountryCurrent Account
(% of GDP)
Fiscal Balance
(% of GDP)
HeadlineInflation
(%)
Thailand -0.6 -2.0 2.2
India -4.4 -8.5 10.9
Indonesia -3.4 -2.2 7.3
Brazil -3.4 -3.0 6.3
Turkey -7.4 -2.3 7.7
South Africa -6.1 -4.9 5.9
Current account, fiscal balance and inflation in 2013
• Thailand is distinct from other fragile economies. • External vulnerabilities appear manageable with Thailand’s strong foreign reserve positions, and
slight current account deficit.
4
Thailand’s growth potential
Source: Bank of Thailand, Fiscal policy office
-6
-4
-2
0
2
4
6
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
headline inflationcore inflationpolicy interest rate
Inflation (%YoY)
1.670.91
2.25Dec -13
Public debt to GDP and fiscal deficit to GDP
0
20
40
60
80
-6
-4
-2
0
2
4
6
2005
2006
2007
2008
2009
2010
2011
2012
Dec-1
3
Fiscal balance/ GDP (LHS)Public debt/ GDP (RHS)
(%)(%)
45.5
-2.0
• Domestic vulnerabilities remain contained:- Strong commitment to fiscal discipline reflect sound fiscal positions and well-managed public debt- Subdued inflation leaves room for accommodative monetary policy stance
Public debt to stay below 60 percent of GDP under fiscal sustainability framework
5
Thailand’s growth potential
Source: Bank of Thailand, Fiscal policy office
75
80
85
90
95
100
-5
0
5
10
15
20
Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Private credit growth (LHS)
Loan to deposit (RHS)
Private credit growth and loan to deposit ratio
96.6Dec -13
11.3
(% YoY) (%)
Capital adequacy and Non-performing loans
05101520253035404550
02468
1012141618
1998
2000
2002
2004
2006
2008
2010
2012
Tier1 (LHS)CAR (LHS)Gross NPLs to total loan (RHS)
(%) (%)16.4
12.1
2.2
• Domestic vulnerabilities remain contained:- Financial sector resilience is strengthening. Credit boom is gradually cooling off while bank capitalization and
asset quality continue to improve.
6
Thailand’s growth potential
70
80
90
100
110
end2
012
Feb-
13
Apr-1
3
Jun-
13
Aug-
13
Oct-1
3
Dec-1
3
4 Fe
b-14
Singapore Thailand Malaysia
Philippines Indonesia
Source: Bloomberg, The stock exchange of Thailand, The Thai bond market association
• The Thai Baht has weakened, though has been less affected by the regional turbulence amid QE tapering. • Slight Baht depreciation could boost Thailand’s export competitiveness.
Foreign net capital flowExchange rate (%) Rebased end 2012 = 100 (billion USD)
-24%
-11%-9%-7%-4%
2.4
0.8 1.5
0.5
-1
.6 -1.5
-0.1
-2.1
2.3
0.3
-1.9
-0.4
-0.6
0.5
-0.6
0.2
-0.7 -0
.2 -1
.8 0.0
-1
.2 0.3
0.0
-1.5 -1
.2
-0.4
-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0
Jan-
13
Mar-1
3
May-1
3
Jul-1
3
Sep-
13
Nov-1
3
Jan-
14
Bond market Equity market
7
Thailand’s growth potential
22.0
4.3 7.4 8.315.3 13.6 13.6
26.0
8.3 10.9 11.9 10.0 9.8 9.7
0
10
20
30
ASEAN (9) CLMV CLMM China US EU (27) Japan
22.0 26.0
14.0
29.0
4.511.8 9.6
26.0
11.8 8.31.4 2.6
-5.2
0.8
-100
10203040
ASEAN (9) CLMV CLMM China EU (27) Japan US
• Exports return as a bright spot, supported by stronger global and regional demand.• Exports to ASEAN is gaining momentum, where Thailand’s exports to ASEAN reached 26% of total
exports in 2013 and its trade balance with ASEAN is already in a surplus. • Border trade with CLMV is growing robustly and will likely do so for years to come.
Thailand’s exports growth by destination (value in term of USD)
Source: The customs of Thailand, IMF's World Economic Database, forecast as of October 2013
Note: *CLMV= Cambodia, Laos, Myanmar and Vietnam. Real GDP growth rate for CLMV is weighted averaged.**CLMM= Cambodia, Laos, Myanmar and Malaysia (border trade). Real GDP growth rate for CLMM is weighted averaged.
Thailand’s exports by destination to total exports
(%YoY)
Real GDP growth rate
Country 2012 2013 2014 2015 2016ASEAN5 6.2 5.0 5.4 5.5 5.4
CLMV* 5.7 5.9 6.0 6.0 6.0CLMM** 5.6 5.0 5.2 5.4 5.4
China 7.7 7.6 7.3 7.0 7.0
US 2.8 1.6 2.6 3.3 3.5EU (27) -0.3 0.0 1.3 1.6 1.8Japan 1.9 1.9 1.2 1.1 1.2
(%)
8
(%)
Thailand’s growth potential
Source: The customs of Thailand, World trade organization
9
• G3’s economic recovery benefits Thailand two-fold:- Thailand’s direct trade with G3 through exports of about 30% of total Thai exports.- Thailand’s exports of intermediary products to ASEAN and China as part of the supply chain to G3,
plus stronger regional demand for final consumption.
Thailand’s growth potential
Thailand
US, EU (27), Japan
Final consumption exports: 12% of total Thai exports
Intermediary product exports: 26% of total Thai exports
Direct trade: Exports to G3 30% of total Thai exports
ASEAN (9), China
Direct trade: Exports to G3 30% of total ASEAN (9) exports
Direct trade: Exports to G3 40% of total China exports
10
A new government could be formed by Q4 2014.
General election could be completed in Q2 2014
The government is processing to setup the parliament in H1 2014. The key changes are:
• reforming political system
• resolve populism policies
• PM and some politicians in caretaker government are in lawsuit.
Political resolution is expected in Q2 2014.
Econ
omic
grow
th
The incumbent’s policies
• Tax reform • Land reform• ASEAN connectivity
• Pro-fiscal stimulus• Pro-populism policy• Pro-welfare
• Reducing the cost of living for Thai people•Increasing the net purchasing power among mid to lower income people•Pro-business•Pro-investment•Planned public infrastructure investment
The opposition’s policies
• Political resolution is expected later in the year; economic policies will continue to be pro-growth and supportive of domestic demand no matter which party takes office.
• Part of planned infrastructure investments are likely to be postponed, but will help to boost the country’s competitiveness and promote inclusive growth once implemented.
Thailand’s growth potential
Developed markets are recovering
• Global activities strengthened during the second half of 2013 and expected to improve further in 2014–15, largely due to the recovery in the advanced economies.
Thai Companies are growing beyond Thailand
The volatility of international capital flows
• Continued Fed’s tapering may trigger more capital outflows, and deeper-than-expected slowdown in key emerging economies.
Key success factors for the Thai economy in 2014:
Political instability• The parliament will likely be dissolved in H1 2014 followed by new election.
• Over the last 5 years of political uncertainty, Thai listed companies have been resilient, as profitability remains strong and regional investment expands.
Upside gain
Downside risks Key challenges facing the Thai economy in 2014:
• Although current external and internal environments remain challenging, the resilience of underlying economic fundamentals will allow the Thai economy to weather the storm and reap global opportunities.
11
Thailand’s growth potential
• Thailand’s growth potential remains promising• Exports continue as a bright spot, supported by stronger global and regional demand • Growth opportunities through intra-regional trade and investment connectivity
• Thai listed companies continue to be resilient
• Thailand’s capital market and SET plays a major role in financialconnectivity
Opportunities amid challenges: focusing on fundamentals
100.879.6
53.730.1 21.6
-8.8 -10.6-27.2
92.976.8
46.768.6
9.3 21.22.0
-35.4Philippines Thailand Malaysia Indonesia Singapore India Vietnam China
In USD In local currency
10.4
0.4
-5.0 -4.2 -2.4-5.4
3.5
-4.1
10.3
2.6
-3.4 -3.1 -1.9-4.4
3.4
-3.9
Vietnam Philippines Malaysia India Thailand Singapore Indonesia China
In USD In local currency
4-year (2010-2013) index performance (%); data as at end Dec 2013
YTD index performance and movement(%); as at Jan 31, 2014
• SET 2010-2013 index performance was among the best in the world. • In the short run, SET index performance YTD is around -2.4% in line with other EMs. Nevertheless, SET
index to date outperformed Singapore, Malaysia and MSCI EM and World Indices.
Source : Bloomberg, The stock exchange of Thailand
90
95
100
105
31/12
/2013
5/1/20
14
10/1/
2014
15/1/
2014
20/1/
2014
25/1/
2014
30/1/
2014
ThailandMSCI World IndexMSCI Emerging Markets IndexMSCI BRIC Index
YTD index performance and movementDec 31, 2013=100
13
Thai listed companies
17.814.5 15.0 14.2 14.9 13.5
9.9 11.5 10.3
16.6 15.9 14.4 13.4 13.3 11.6 9.8 9.7 7.9
Philippines Malaysia Taiwan Indonesia Singapore Thailand Korea Hong Kong China
Jan2013 Jan2014
• SET’s forward P/E ratio is attractive compared to peers, while market dividend yield is around 3.4%.
(%)
Market Dividend Yield
Forward P/E ratio
3.0 2.8 3.7 2.6 2.4 3.42.1 2.0 1.3
3.5 3.5 3.4 3.4 3.1 2.8 2.3 2.2 1.3
Hong Kong Singapore Malaysia Thailand China Taiwan Philippines Indonesia Korea
Jan2013 Jan2014
Source : Bloomberg, The stock exchange of Thailand
14
Thai listed companies
2.2 2.1 1.6
-1.6 -2.1 -2.7-5.0 -5.1 -5.2
Financial SET Technology Consumption Property Services Manufacturing Agri & Food Resources
YTD sector index performance
(%); as at Jan 31, 2014
• With strong underlying growth opportunities, many sectors are set to quickly recover. • Financial and technology outperformed, as reported earnings improved in Q4 and FY2013.• However, manufacturing, agri & food, and resource industries dropped, as Q4 earnings are expected
to decline.
&construction
189.2146.5 113.6
80.3 76.8 71.8 66.7 37.3 16.7
Services Technology Agri & Food Property SET Manufacturing Financial Consumption Resources
4-year (2010-2013) sector index performance (%); data as at end Dec 2013
&construction
Source : The stock exchange of Thailand
15
Thai listed companies
16
Thai listed companies• Thai listed companies have become global and regional players.• Number of Thai listed companies invested abroad expanded significantly by 50 percent
between 2006-2012.
Number of Thai listed companies invested abroad
47
36
1610 10
4 6 3
68
46
2519 19
11 9 7
0
10
20
30
40
50
60
70
80
2006 2012
Source : The stock exchange of Thailand
17
• Foreign trade and investments of Thai listed companies have generated significant portions of foreign revenues. During 2006-2013, revenue from both investment abroad and exports grew rapidly at the annual rates of 19% and 9%, respectively.
• Revenue of trade and investment abroad reached 40 percent of total revenue of listed companies in recent years.
Notes: * 42 listed companies revenue, ** 85 listed companies revenueSource : The stock exchange of Thailand
Foreign income of listed companies
3,401 4,027 4,8
64 5,560
6,023
9,290
11,50
4
7,474 8,3
71 9,591
8,375 10
,252 12
,701 15,13
3
02,0004,0006,0008,000
10,00012,00014,00016,000
2006 2007 2008 2009 2010 2011 2012Revenue from investment abroad* (19% CAGR)Revenue from exports** (9% CAGR)
(million USD)
Thai listed companies
Revenue of trade and investment abroad to total revenue(%)
26 2831
34 3336
40
05
1015202530354045
2006 2007 2008 2009 2010 2011 2012
18
Source : IMF's World Economic Database, forecast as of October 2013
Thai listed companies
2012 GDP and Expected 2015-2018 GDP growth
USD 53 billion7.0%
USD 138 billion5.5%
USD 14 billion7.5%
USD 9 billion7.6%
USD 377 billion4.7%
China
USD 8,227 billion7.0%
MalaysiaUSD 303 billion
5.2%
• In particular, Thailand stands to benefit from our connectivity to high-growth CLMV.
SET as connectivity for investing in CLMV
• Equity investment in listed companies operating in and exporting to CLMV
• Investing in holding companies operating abroad
• Infrastructure funds for infrastructure projects in CLMV
Holding company listing
• CK power (CKP) acquired majority of shares in South East Asia Energy Co.,Ltd. (SEAN), the major shareholder of Nam Ngum 2 hydro power plant in Lao PDR, making its core asset.
• CKP also invested in solar power and cogeneration power plants in Thailand.
• Listed on SET as of July 18, 2013 with 2,680 million baht IPO value.
The first holding companies operating abroad listed on SET
• AMATA VN invest in industrial estate and commercial project in Vietnam.• Under filing process.
Source : The stock exchange of Thailand
Holding company(Thai incorporated)
Thai/Foreign subsidiary
(core business)
Shareholders (Thai/foreign)
50% (must be maintained)
Company to be listed by 2014:
• PM Thoresen Asia Holdings Ltd. (PMTA)'s core operating is a fertilizer maker, Baconco which has evolved into Vietnam’s second largest fertilizer company in terms of production.
• Under filing process.
19
Thai listed companies• Holding company: a new investment vehicle to match investors in SET to businesses operating
abroad.
Infrastructure fund listing
BTS rail mass transit growth infrastructure fund (BTSGIF) • 60 billion baht IPO size : the largest IPO in Thailand• Revenue from the operation of the original BTS sky train system.
3 infrastructure funds listed on SET
Amata B.Grimm power plant infrastructure fund (ABPIF) • 6 billion baht IPO size• Revenue from the operation of power plants for industrial
sectors in Thailand and Vietnam
Source : The stock exchange of Thailand
Potential businesses to utilize infrastructure fund:
Private sector: telecommunication, electricity cogeneration
State-own enterprises: Metropolitan Waterworks Authority, Provincial Waterworks Authority, Electricity Generating Authority of Thailand
0
100
200
Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14
(billion baht); data as at Feb 5, 2014Market capitalization of BTS and BTSGIF
BTSBTSGIF
BTSGIF first day trade
True Telecommunications Growth Infrastructure Fund(TRUEIF) • 58 billion baht IPO size: the first telecom infrastructure fund• Revenue from the rental of 5,845 telecommunication towers,core fiber-optic cable grids and related transmission equipment(FOC system)
0
20
40
Jul-13 Sep-13 Nov-13 Jan-14
(billion baht); data as at Feb 5, 2014Market capitalization of AMATA and ABPIF
AMATAABPIF
ABPIFfirst day trade
-50
50
150
Oct-13 Dec-13 Feb-14
(billion baht); data as at Feb 5, 2014Market capitalization of TRUE and TRUEIF
TRUE
TRUEIFTRUEIFfirst day trade
20
Thai listed companies• Infrastructure funds are new SET investment vehicles and will support both domestic and regional
infrastructure developments.
• Thailand’s growth potential remains promising• Exports continue as a bright spot, supported by stronger global and regional demand • Growth opportunities through intra-regional trade and investment connectivity
• Thai listed companies continue to be resilient
• Thailand’s capital market and SET plays a major role in financial connectivity
Opportunities amid challenges: focusing on fundamentals
• Capital market continues to deepen. • The size of equity and bond markets has surpassed total bank lending since early 2000s. In 2013,
despite financial turbulences, bond and equity market capitalization remained nearly twice bank lending.
Source : Bloomberg, The stock exchange of Thailand
22
Thailand’s capital market and SET
0
300
600
900
1,200
1978 1983 1988 1993 1998 2003 2008 2013
Bank lending Equity Bond
Equity(Market
capitalization)USD 356 Billion
Bond Outstanding
USD 274 Billion
Bank lendingUSD 376 Billion
Outstanding value of Bank lending, Equity market and Bond marketUnit: Billion USD
Share turnover velocity* (2011 – 2013) (%)
Average daily turnover (2008 – 2013)(million USD)
*Share turnover velocity is calculated by {Monthly EOB Domestic Share Turnover / Month-end Domestic Market Capitalization) *12Source : World Federation of Exchanges (WFE)
Thailand’s capital market and SET
23
• SET’s average daily turnover is around USD 1,535 million, up from USD 1,000 million in 2012.
0
20
40
60
80
100
120
140
Jan-
11Ap
r-11
Jul-1
1Oc
t-11
Jan-
12Ap
r-12
Jul-1
2Oc
t-12
Jan-
13Ap
r-13
Jul-1
3Oc
t-13
Thailand Singapore Malaysia
Indonesia Philippines
33
Dec-13
48
281813
0
500
1,000
1,500
2,000
2,500
2008
Feb-
10Ju
n-10
Oct-1
0Fe
b-11
Jun-
11Oc
t-11
Feb-
12Ju
n-12
Oct-1
2Fe
b-13
Jun-
13Oc
t-13
Thailand Singapore Malaysia
Indonesia Philippines
779Dec-13
753
274455
130
19% 18% 23% 24% 22%33%
61% 62% 55% 55% 57%45%
7% 8% 9% 8% 9% 10%
13% 12% 13% 13% 13% 13%
2009 2010 2011 2012 2013 Jan-14
Foreign investors Local retail investors
Local institutes Proprietary trading
• SET has a well diversified investor base. • Local retail investors have played a key role in providing liquidity to SET and stabilizing SET index amid
volatile international capital flows.
Source : Bloomberg, The stock exchange of Thailand
24
Thailand’s capital market and SET
SET index and net buying position in SET and maiUnit: billion baht (LHS), index (RHS); as at end Jan 2014
Transactions by investor type
1,474 1,542 1,5611,598
1,5621,452
1,423 1,2941,383 1,443 1,371 1,299 1,274
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
-80
-60
-40
-20
0
20
40
60
80
Local institutes Proprietary tradingForeign investors Local retail investors SET index
(3,542) (5,347)
(average trading value: million baht)
(6,713) (7,830) (10,940)
(11,113) (18,018) (16,287) (17,765) (28,747)
(10,443)
(14,247)
(1,214) (2,205) (2,586) (2,512) (4,294)(2,356) (3,495) (3,886) (4,198) (6,347)
(3,095)
(3,989)
Number of listed companies having market capitalization >= $1 billion and daily average trading value* >= $10 milliondata as at Jan 2014
*Average daily trading value during Nov 2013 – Jan2014**Large-cap listed companies mean companies having market capitalization>= $1 billion and daily average trading value >= $10 millionSource : World Federation of Exchanges (WFE), Bloomberg
Market capitalization(billion USD); data as at Dec 2013
744
500
354 347
Singapore Malaysia Thailand Indonesia
22
17
108
Thailand Singapore Malaysia Indonesia
25
Thailand’s capital market and SET• SET has a relatively larger number of liquid large-cap listed companies compared to peers.
Source: Asian Corporate Governance Association
The World Bank corporate governance country assessment 2012ACGA ’s CG Watch market scores: 2007 to 2012
• Many agencies recognize Thailand as a leader in capital market corporate governance.
83 83 76 85 87 8364 69 62 65 66 63
Thailand (2012)Selected Asia (Indonesia, India, Malaysia, Thailand, Philippines, Vietnam)
67.7% 62.3% 56.1% 48.9% 43.4%
0%
20%
40%
60%
80%
Thailand Malaysia Singapore Philippines Indonesia
ASEAN corporate governance scorecard*2012
•average total corporate governance score of the country’s 100 largest listed companies based on market capitalizationSource : Joint Initiative of the ASEAN Capital Markets Forumand the Asian Development Bank
2007 2010 2012
1.Hong Kong (67) 1.Singapore (67) 1.Singapore (69)
2.Singapore (65) 2.Hong Kong (65) 2.Hong Kong (66)
3.India (56) 3.Japan (57) 3.Thailand (58)
4.Taiwan (54) 4.Thailand (55) 4.Japan (55)
5.Japan (52) 4.Taiwan (55) 4.Malaysia (55)
6. Korea (49) 6.Malaysia (52) 6.Taiwan (53)
6. Malaysia (49) 7.India (49) 7.India (51)
8.Thailand (47) 7.China (49) 8.Korea (49)
9.China (45) 9.Korea (45) 9.China (45)
10.Philippines (41) 10.Indonesia (40) 10.Philippines (41)
11.Indonesia (37) 11.Philippines (37) 11.Indonesia (37)
Source: The World Bank
26
Thailand’s capital market and SET
Developed Advanced Emerging Secondary Emerging Frontier
Australia Brazil Chile Argentina
Austria Czech Republic China Bahrain
Belgium/Luxembourg Hungary Columbia Bangladesh
Canada Malaysia Egypt Botswana
Denmark Mexico India Bulgaria
Finland Poland Indonesia Cote d’lvoire
France South Africa Morocco Croatia
Germany Taiwan Pakistan Cyprus
Greece Thailand Peru Estonia
Hong Kong Turkey Philippines Ghana
Ireland Russia Jordan
Israel Thailand Kenya
Italy UAE Lithuania
Japan Macedonia
Netherlands Malta
New Zealand Mauritius
Norway Nigeria
Portugal Oman
Singapore Qatar
South Korea Romania
Spain Serbia
Sweden Slovakia
Switzerland Slovenia
UK Sri Lanka
USA Tunisia
Vietnam
FTSE Global Equity Index Series Country Classification as at March 2012
Source : FTSE, MSCI
• The Thai capital market was upgraded from the Secondary Emerging Market to Advanced Emerging Market status by FTSE in March 2012.
• 26 Thai stocks are now in the MSCI Standard index.1. ADVANC: Advanced Info Service2. AOT: Airports of Thailand3. BANPU: Banpu4. BAY: Bank of Ayudhya5. BBL: Bangkok Bank6. BEC: BEC World7. BGH: Bangkok Dusit Medical Services8. BTS : Bangkok Mass Transit System9. CPN: Central Pattana10. CPF: Charoen Pokphan Foods11. CPALL: CP All12. GLOW: Glow Energy13. HMPRO: Home product center14. IVL: Indorama Ventures15. IRPC: IRPC16. KBANK: Kasikornbank17. KTB: Krung Thai Bank18. MINT: Minor international19. PTT: PTT20. PTTGC: PTT Global Chemical21. PTTEP: PTT Exploration & Production22. SCB: Siam Commercial Bank23. SCC: Siam Cement24. TMB : Thai Military Bank25. TOP: Thai Oil26. TRUE: True Corporation
26 Thai stocks in MSCI Standard index (as of November 2013)
27
Thailand’s capital market and SET
* Others comprise of Oil futures, SET50 Index options, Silver futures, Interest rate futures and Sector futures Source: SETSMART
28
Thailand’s capital market and SET• Derivatives market is growing rapidly, especially single stock futures and SET50 index futures
Daily average trading volume in TFEX(unit: number of contracts per day)
8,498 10,381 10,212 17,690 16,467
23,218 23,048 154 600
4,006
6,468 8,849
34,351 24,545
1,397 4,014
16,479 14,927
9,014
5,206
2,751
977
582
185 393 444
508 829
457
311
2008 2009 2010 2011 2012 2013 Jan-14
Others*
Currency futures
Gold futures
Single stock futures
SET50 index futures
CAGR 2008-2013 50%
8,837Total 12,771 18,676 41,145 48,823 68,017 53,692
Disclaimer This document was prepared by The Stock Exchange of Thailand in good faith upon sources believed to
be reliable but no representation or warranty expressed or implied is made to their accuracy or correctness.
The Stock Exchange of Thailand accepts no liability for any direct or consequential loss or damage arising
from any use of this document or its contents. All information and opinion expressed here is subject to
change without notice. The copyright belongs to The Stock Exchange of Thailand. No part of this document
may be published or copied in any form or by any means without the written permission of The Stock
Exchange of Thailand.
29
Further information: http://www.set.or.th/jp/info.html
Post-Trade Services Clearing & settlement Central Depository Securities and fund
registration
Derivatives Stock index futures Single stock futures Gold / Silver futures Derivative warrants Interest rate futures Oil futuresCurrency futuresSector Index Futures
Equities Domestic common shares Dual listings State enterprise listings SME listings Warrants Property funds / REITs / Infrastructure Fund Domestic mutual funds / ETFs Domestic indices / FTSE indices Shariah index
Fixed Income Corporate bonds Government and state
enterprises bonds
SET Information Services SET listed companies &
product information database
Exchangeand
Trading
Post-Trade Services
Data, System and Other Services
Integrated
Model
Appendix: Trading at SET
30
Trade stock-F
Most SET-listed Thai companies have foreign ownership restriction. Check out foreign ownership restriction of each stock via www.set.or.th >> company/securities info >> equity >> then select your preferred company.
2 options to get all benefits from investing in Thai stocks.
Option 1: Mostly for strategic shareholders
Trade NVDR stock or stock-R
• Another option is to trade NVDRs. (Non-Voting Depository Receipts)
• Obtain all financial benefits with the exception of voting rights.
• Gain greater efficiency, flexibility and convenience as if you are local investors.
Option 2: General option
Appendix: Trading at SET
Remarks: Trading stocks on local board is applicable. However, to get all benefits, stocks should be transferred to stock-F or stock-R. NVDRs traded on local board, no price different from local stocks.
NVDR, 41.16%
Local Shares, 45.77%
Foreign Shares, 13.07%
Proportion of trading value by type of stocks by foreign investors
Source: SET, May 2012-April 2013
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Appendix: NEXT FUNDS Thai Stock SET50 Exchange Traded
Fund
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Source: Tokyo Stock Exchange
Fund Outline
Underlying Index SET 50 index
Management Company Nomura Asset Management
Listing Date 12 May 2011 at Tokyo Stock Exchange
Market Price (*1) 2,534 JPY as of 31 Jan 2014
12 month Dividend Yield (*3) 1.54%
Market Price (Reference) S&P 500
Past 3 months -11.86% +5.53%
Past 6 months -9.44% +9.95%
Past 1 year -10.14% +33.19%
Past 3 years - +72.86%
Past 5 years - +145.36%
Name Weight
PTT PCL 8.90%
Advanced Info Service 7.20%
PTT Exploration & Production 6.70%
Siam Commercial Bank 5.70%
Siam Cement PCL-NVDR 5.00%http://www.tse.or.jp/english/rules/etfs/list/pamphlet/1559-e.pdf
Return on Investment
Constituents (as of 29 Nov 2013)
Performance
Allow SET to broadcast VDO File of Company’s Analyst Meeting
Opportunity Day Webcast
1. Website www.set.or.th/oppday www.settrade.or.th/oppday
2. iPhone & Smart Phone
Live from Meeting room
Appendix: Opportunity Day Webcast
3 channels to view and join Live opportunity Day
Note: Presentation in English is currently still limited. However, the company presenting in English are increasing gradually.
• Quarterly updated info of many listed companies are available on opportunity day webcast.
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1
2
Appendix: www.aseanexchanges.org• More info of ASEAN exchanges, go to www.aseanexchanges.org .
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