The Thai SET and regional markets rose on Monday after China decided to allow greater flexibility in the exchange rate of the yuan.Thai share prices peaked at 807.69 points and closed at 806.07 points, an increase of 1.80 per cent with the value of Bt29.9 billion.
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. Ultimately, share performance reflects your company’s performance. But transparency and your free float are also critical factors.
The Securities and Exchange Act of 1992 (SEA), stipulates the Securities and Exchange Commission (SEC), a single unified supervisory agency, as the regulator of the Thai Capital Market. While the SEC oversees the development of the Kingdom’s capital market, the Bank of Thailand (BOT) is responsible for the country’s money market. The SEA also provides a clear separation between the primary and the secondary markets to facilitate their successful development. Both primary and secondary markets are regulated by the SEC.
The SEC oversees and regulates the primary market. In this regard, a company wishing to issue new securities, carry out an initial public offering (IPO) or offer additional securities to the public must first apply for SEC approval and comply with its filing requirements. The SEC is then required to carefully review the financial status and operations of the company before allowing the firm to issue securities to the public.