The new president of the Stock Exchange of Thailand is pondering opening up the central trading system to foreign investors.
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Opening the trade system to foreign investors would be a way of boosting liquidity, particularly for the top 30 per cent of listed companies, which could be promoted to be on a par with their regional peers.
Supported by liquidity, these companies should enjoy higher trading volume and hence higher prices. With high prices, they could be included in the Morgan Stanley Capital Index, and then they would then fully show their business potential, which they still have despite negative factors at home and abroad. Thai companies’ resilience to the political crisis will also be Charamporn’s message to international investors.
The 2009 market rally reflects the perception that valuations are about long-term potential, and that political crises in Thailand rarely have a dramatic impact on the fundamentals of the economy. If we look at the EV/EBITDA multiples of the oil and gas sector, for example, valuations are still low compared to regional peers. This is partly a reflection of regulatory risks and political instability in Thailand.
Foreign direct investment has decelerated markedly in Thailand, but inflows should continue in 2009 and 2010 due to the secular trend to move production away from advanced economies.
The medium-term outlook is sobering, with growth expected at 3.5 percent in 2010 and likely remaining below potential for the next three years. Because the Thai economy is largely dependent on final demand in advanced economies, a return to pre-crisis rates of economic growth (a full recovery vs. a rebound to pre-crisis levels) will require a combination of (a recovery of demand from advanced economies and a rebalancing of the sources of growth to reduce Thailand’s dependence on demand from advanced economies. Neither process is likely to be swift. Recovery from a financial crisis is a lengthy process that involves the rebuilding of balance sheets, and the IMF estimates that half of the losses in the financial system in advanced economies are yet to be recognized.
Thailand’s Stock Exchange (SET) market report for February 2021
March 8, 2021
SET market report for February 2021
BANGKOK, March 8, 2021 – The global stock exchanges in February 2021 faced
volatility from bond yield spike that hit the 12-month high, reflecting an
anxiety in revising inflation forecast that could cause major central banks in
many countries to temper monetary policy easing sooner than previously expected.
The Stock Exchange of Thailand (SET) Index fared well on the heels of the
global economic rebound and optimism on recovery in service and tourism sectors
following the domestic vaccination rollout.
SET Senior Executive Vice President Soraphol Tulayasathien said the SET Index
gained 2.0 percent from the previous month to 1,496.78 points at end-February,
buoyed by a pickup in the world economy coupled with optimism after Thailand
begun importing vaccine. The Market for Alternative Investment (mai) Index
logged its closing high during the month-end in two years of 379.07, or a 6.4
percent increase from a month ago in February. Comparing with year-end
performance, Agro & Food Industry, Financials, Industrials and Services industry
groups outperformed SET Index.
Key highlights for February
-SET Index ended 1,496.78 points in February or a 2.0 percent gain from the
month before, outpacing other regional peers and MSCI ASEAN Index with a 1.6
-mai Index closed at 379.07 points, a 6.4 percent increase from the preceding
month (the highest level at month-end close in two years.
-In February, several industry groups increased from the previous month. Agro &
Food Industry, Financials, Industrials and Services outpaced SET Index.
-The average daily trading value of SET and mai soared 43.2 percent year-on-year
to THB 94.32 billion (approx. USD 3.08 billion). The trading value of THB
126.92 billion on February 25, 2021 was the sixth highest level since SET
-Retail investors continued to dominate trading, accounting for 47.3 percent of
total trading, and they were net buyers for another month at THB 30.28 billion
in February. Brokers bought a net THB 2.44 billion, while foreign investors were
the net sellers for the second consecutive month with a net THB 18.61 billion.
Local institutional investors sold a net THB 14.11 billion. To sum up, during
the first two months of this year, foreign investors were net sellers of a total
of THB 29.28 billion.
-In February, IPO activities continued with two new listings on SET and one
listing on mai. Particularly, the IPO value in the first two months of this year
outpaced ASEAN peers, mainly from the listing of PTT Oil and Retail Business
-SET’s forward P/E ratio was 19.3 times at end-February, while historical P/E
ratio was 26.8 times, higher than the average of the Asian peers at 15.1 times
and 25.3 times, respectively.
-Dividend yield ratio of SET was 2.57 percent at end-February, above Asian stock
markets’ average ratio of 2.28 percent.
– In February, the average derivatives trading volume recorded at 435,761
contracts per day, a 24.0 percent drop from end-January due to the decrease of
trading activities in Single Stock Futures and SET50 Index Futures. However, it
was partially offset by the rise of trading volume in Gold Futures & Silver
Futures and Agricultural Futures (entirely from Japanese Rubber Futures: JRF).
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Thailand’s Stock Exchange (SET)-listed companies’ 2020 earnings drop due to COVID-19, falling oil price
SET News 17/2021
March 12, 2021
SET-listed companies’ 2020 earnings drop due to COVID-19, falling oil price with
positive sign of recovery in H2
– Yearly sales fell 14.4 pct to THB 10.68 trillion, hit by COVID-19 pandemic
& sharp decline in oil price.
– Operating profit of Agribusiness, Food & Beverage, Personal Products &
Pharmaceuticals, and packaging sectors increased.
– Q4 sales, core operating profit and net profit of SET-listed firms rose
BANGKOK, March 12, 2021 – Companies listed on The Stock Exchange of Thailand
(SET) reported a 53 percent year-on-year drop of net profit in 2020, hit by
COVID-19 and sharp oil price decline. However, the companies have continued to
revive following the economic recovery, starting from Q2/2020 while the
pandemic containment measures have increasingly been relaxed.
SET Senior Executive Vice President Manpong Senanarong said that 718 SET- and
mai-listed companies, accounting for 96.2 percent of the total 746 companies
(excluding property funds, infrastructure funds, and non-compliance or NC),
submitted their financial reports, ended December 31, 2020. Among those firms,
509 companies or 70.9 percent posted net profits.
In 2020, SET-listed companies’ earnings were down year-on-year, marking combined
sales of THB 10.68 trillion (approx.. USD 34.66 billion), core operating
profits of THB 736.61 billion and net profits of THB 420.84 billion. Worst
performer in terms of sales was Energy & Utilities sector. Net profits of
companies in Transportation & Logistics sector recorded the most decline, hugely
impacted by large corporations’ losses. On the other hand, operating profit of
the following sectors: Agribusiness, Food & Beverage, Personal Products &
Pharmaceuticals and Packaging, notched higher.
SET-listed companies’ gross profit margin rose to 21.10 percent from 20.56
percent, while their core operating profits edged lower to 6.90 percent from
7.31 percent, and net profit margin slipped to 3.94 percent from 7.17 percent.
2020 growth rate (Y-o-Y) Total Excluding Energy & Utilities sector and
large firms in Transportation & Logistics sector
Sales -14.4% -6.8%
Core operating profit -19.2% -1.4%
Net profit -53.0% -33.0%
If excluding earnings of companies in Energy & Utilities sector, the decline in
2020 was in line with the pace of the country’s economic growth and the drop of
net profits was not considerably deep. In Q4/2020, sales, core operational
profits and net profits picked up from the previous quarter..
Quarterly growth rate excluding Energy & Utilities sector and large firms in
Transportation & Logistics sector
%Q-o-Q Q1/20 Q2/20 Q3/20 Q4/20
Sales -3.3 -9.7 8.5 3.7
Core operating profit 17.0 -19.4 37.9 2.8
Net Profit -24.7 -31.6 36.9 7.7
Regarding financial position at end-2020, Thai listed firms’ debt-to-equity
ratio (excluding those in Financials industry group) continued to rise to 1.58
times from 1.35 a year before.
“The virus outbreak adversely impacted consumption demand and tourism &
hospitality industries. As a result, business performance of listed companies in
most sectors decreased. However, the new normal way of life has accelerated
digitization while demand in healthcare & wellness surged, driving growth for
Food & Beverage, rubber-related Agribusiness, Packaging and digital platform
Communication Technology sectors. Moreover, the ease of pandemic control
measures in the second half of the year contributed to the improving performance
of listed companies across sectors from the bottom in Q2,” said Manpong.
Companies listed on Market for Alternative Investment (mai) posted a 7.2 percent
drop of total sales to THB 166.88 billion in 2020. Their operating core profits
increased 8.3 percent from a year earlier to THB 6.44 billion, while net
profits fell 63.0 percent to THB 3.37 billion.
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