SET Seeks Long-Term Plans For Future Capital Market Hurdles

Since 2012, the Stock Exchange of Thailand (SET) has recorded the highest trade value in Asean, yet it necessitates a strategic, long-term roadmap to navigate the unfolding changes and hurdles of capital markets, the bourse reports.

As of the close of 2022, the market capitalization of the SET and the Market for Alternative Investment stood at 20.9 trillion baht, boasting a compound annual growth rate of 19.2%.

Over its 48-year lifespan, the Thai exchange has swelled to 121% of the country’s GDP.

The SET research team highlights the increasingly pivotal role of the Thai capital market in the economy, particularly after the 1997 economic crisis.

“The SET has evolved and grown in many dimensions such as overall market size, trading liquidity, funding volume and investor base, as well as its recognition of cryptocurrencies and sustainability,” the research paper declared.

In 2022, the daily average trading value of stocks was 76.8 billion baht, marking a 23.3% increase from the previous year. Since 2012, the annual return of SET has been 12.1%.

By the conclusion of 2022, the number of securities trading accounts reached 5,848,429, a 12% surge from the year before.

For the year, the average online trading value of individual investors comprised 78.1% of the total retail investors’ trading value, signaling a shift towards greater digitalization in the capital market, which greatly enhanced trading liquidity, according to the research team.

In an effort to broaden investment offerings, the SET initiated Fractional Depository Receipts (DRx) to facilitate overseas investment diversification for investors.

Investing in DRx allows a modest investment to purchase a portion of global giants such as Apple and Tesla.

Furthermore, the SET developed the Thai Digital Assets Exchange, a platform designed for fundraising and trading digital tokens like investment tokens and utility tokens.

Thailand’s transition towards an ageing society is being considered, catering to the varied needs of investor groups through both digital and physical formats, and proposing unique plans and projects, the bourse stated.

Fundraising through the SET over the past five years amounted to 1.58 trillion baht.

In 2022, the value of initial public offerings stood at 128 billion baht, the highest in Asean and fourth in Asia.

The number of companies registered with the SET has grown to 810.

The market also unveiled the LiVE Exchange to assist small and medium-sized businesses and startups in obtaining funding. In 2022, three companies went public, amassing a total of 196 million baht.

“In the past, the Thai capital market often adjusted to accommodate changes and recover from various crisis situations quite well.”

“During and after the pandemic, for example, the stock market recovered and connected with the local and global economy, which has begun to signal a shift in direction in many key areas,” remarked the SET team.

They pointed out emerging challenges, such as an economic downturn, surging inflation, escalating interest rates, climate change, domestic and international political issues, and technological progress.

A strategic, long-term plan is required by the SET to tackle these challenges, the research team mentioned.