Thai bourse performance in Q3/2010 and September 2010 up sharply As of end Q3/2010, the SET Index closed at 975.30, a 22.32% rise over Q2/2010, which was the highest rate in the region.

The Stock Exchange of Thailand opened today just above the 990-point plateau, and now analysts are forecasting further gains and that a SET above 1000 by the end of the year is likely.

The global forecast for the Asian markets is positive, thanks to earnings that were largely better than expected. Commodities are expected to continue to lead the way as the U.S. dollar continues to weaken, with gold touching another fresh record closing high. Technology stocks and airlines also may rally. The European and U.S. markets were all solidly higher, and the Asian markets are tipped to follow suit.

The combined SET and mai total market capitalization was at THB7.94 trillion (approx. USD264.73 billion), reaching its all-time highs and accounting for 82% of the country's Gross Domestic Product (GDP), the highest percentage since 1996.

The combined SET and mai total market capitalization was at THB7.94 trillion (approx. USD264.73 billion), with daily average trading value of THB36.14 billion (approx. USD1.20 billion), while Thailand Futures Exchange PCL’s daily average trading volume reached 18,305 contracts. All figures recorded all-time highs. The combined SET and mai market capitalization accounted for 82 % of the country’s Gross Domestic Product (GDP), the highest percentage since 1996. The three Industry Groups whose indices rose the highest were Services, Property & Construction, and Financials. Meanwhile, listed companies raised funds through equities, with a 97.40% rise over Q3/2009. By end-September 2010, the SET Index had increased by 6.80% over the previous month; this rise was in line with those of other regional exchanges’ Indices.

The Stock Exchange of Thailand (SET) reported that in Q3/2010 its performance distinctively accelerated, as a result of a continual foreign capital flow into the Thai and regional markets.

This rise was due to high liquidity in global financial markets and continuing economic downturn in developed counties. Also, investors had confidence on Thailand’s continuing economic recovery, and more stable domestic politics. These factors resulted in the SET Index’s rising at the highest rate among markets in the region. Meanwhile, the SET market capitalization, SET daily average trading value and Thailand Futures Exchange PCL’s daily average trading volume soared and reached all-time highs.

As end-Q3/2010, SET Index closed at 975.30, a 22.32% rise over end Q2/2010, the highest rate of increase among regional exchanges. The SET Index’s place at end-Q3/2010 was a 32.78% increase over end-2009. By end-Q3/2010, every Industry Group Index had increased over its end-Q2/2010 value. The three Industry Indices with the highest rates of increase were Service, Property & Construction and Financials. A rise in SET Index resulted in SET forward P/E ratio at end Q3/2010 to reach 14.03 times, up from 11.53 at end-Q2/2010.

The combined SET and mai total market capitalization was at THB7.94 trillion (approx. USD264.73 billion), reaching its all-time highs and accounting for 82% of the country’s Gross Domestic Product (GDP), the highest percentage since 1996.

SET market capitalization as a percentage of GDP

The end-September 2010 SET market capitalization was equal to 82% of Thailand’s GDP. The highest percentage recorded between 1988- 2010 was 105%, in 1993.

Source: SETSMART and the National Economics and Social Development Board, Royal Thai Government

Notes:

1. SET market capitalization includes that of the Market for Alternative Investment. Figures are for the end of each period indicated.

2. The GDP figure used is the nominal GDP for the given period, except for September 2010, the figure used was the sum of the nominal GDP for the last four quarters (Q3/2009-Q2/2010).

In Q3/2010, the SET and Market for Alternative Investment (mai)’s daily average trading value reached THB36.14 billion (approx. USD1.20 billion), an all-time high and a 53.82% increase over Q2/2010. In Q3/2010, foreign investors were net buyers of THB59.99 billion (approx. USD2.00 billion), making this group to be net buyers of THB41.45 billion (approx. USD1.38 billion) over the first nine months of this year. Investors were interested in small and medium-sized securities, as shown from a rise in the proportion of trading value of Non-SET50 Index firms, which increased from 26.75% in Q2/2010 to 34.93% in Q3/2010. In addition, investors were interested in the Property Development and Information & Communication Technology sectors, as shown from the rising proportion of these Sectors. However, the trading proportion of the Energy and Banking Sectors dropped over Q2/2010. Meanwhile, TFEX’s daily average trading volume in Q3/2010 reached 18,305 contracts, an all-time high for TFEX, equivalent to a 36.13% rise over Q3/2009 and a 0.69% rise over Q2/2010.

In Q3/2010, listed companies raised a total of THB21.71 billion (approx. USD723.79) in equities, a 97.40% rise over Q3/2009. Most of the funds were raised by Thai Airways International PCL (THAI) in September of THB15.00 billion (approx. USD0.50 billion). In Q3/2010, the funds raised could be divided into those raised through the initial public offerings of Officemate PCL (OFM) and IFS Capital (Thailand) PCL(IFS) of THB98 million (approx. USD3.26 million) and THB162 million (approx. USD5.40 million), respectively. Moreover, one property fund listed: Mercure Samui Property Fund (MSPF), with THB828 million (approx. USD27.60 million). Meanwhile, seasonal equities offerings of SET and mai in Q3/2010 raised a total of THB20.63 billion (approx. USD687.52 million), or 95 % of total funds raised.

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