Given its vision “To Make the Capital Market ‘Work’ for Everyone”, SET chairman Chaiwat Viboonsawat said yesterday that as a key economic-growth driver for 2017, the exchange was committed to continuing its development with inclusive growth and promoting the government’s economic development for Thailand 4.0.
SET president Kesara Manchusri said that under its three main inclusive strategies, the exchange would become a fund-raising “cultivator” promoting targeted industries and clusters, list foreign assets for new listings, and allow the government to raise funds on the bourse in order to lessen public debt.
While strengthening listed companies through capital-raising for business expansion, the quality of business operations with good environmental, social and governance practices will be developed and a start-up ecosystem will be established through training and trading-platform development, she explained.
Kesara said listed companies would be encouraged to take part in the Dow Jones Sustainability Index (DJSI) and Morgan Stanley Capital International (MSCI) index, while a CLMV Index would also be established.
The SET targets increasing market capitalisation by Bt550 billion next year, with Bt280 billion coming from new listings and Bt270 billion expected to be accounted for by capital increases by listed companies.
About 25 per cent of the new listings are projected to come from targeted industries.
Meanwhile, the cultivator strategy entails creating an investment culture through knowledge improvement and investment promotion via digital platforms, Kesara said.
The exchange also aims to forge an investment savings plan for long-term investment and the ageing society, providing investment knowledge through pension funds, while standing ready to be the central registry for mandatory provident fund schemes, she said.
The SET’s Fund Connext will commence in March, making it more convenient to invest in mutual funds, the bourse president said.
About 110,000 new individual investors are targeted in the Thailand Futures Exchange, she added.
The SET’s last main strategy for 2017 focuses on the excellence of the Thai capital market’s infrastructure and capability to cope with businesses that will have connectivity through standardised digital platforms, including open architecture and cyber-security, Kesara said. The settlement process will also be improved, with planned settlement being shortened to two trading days, or T+2.
“The SET’s main plans for 2017 will play a major part in promoting the government’s Thailand 4.0, strengthening operators, building capital-market infrastructure and preparing for the upcoming ageing society,” Chaiwat said.
The SET Index, as of November 22, had provided the highest yield this year among the Asean-5 countries – Indonesia, Malaysia, Singapore, the Philippines and Thailand – advancing 15 per cent to 1,485.68 points.
The Thai exchange also topped the market-liquidity list for the fifth consecutive year, with an average daily trading turnover of Bt53.44 billion.
The stock exchange was also the champion among its Asean-5 peers for the market capitalisation of initial public offerings so far this year, at Bt136.68 billion, while its listed companies’ fund-raising had climbed by Bt273.47 billion, as of October 30.
The combined market capitalisation of the SET and the Market for Alternative Investment rose 18 per cent from the end of last year, to Bt14.88 trillion.