Capital Markets

With the market capitalisation of its bourse at around BT11.97trn ($391.42bn) as of late March 2014, Thailand has relatively deep and liquid capital markets by regional standards. A derivatives market has grown significantly since 2007, with particular interest in index and single stock futures, as well as gold futures. Following the Asian financial crisis, brokers in Thailand have remained more cautious in their leverage, with margin lending in 2013 at $2.6bn, compared to $3.9bn prior to the crisis. The value of outstanding bonds on the Stock Exchange of Thailand has reached $291bn by June 2013, up 11.8% year-on-year. Government bonds are the most widely traded fixed-income securities, accounting for roughly 880% of daily trades. The kingdom’s large domestic investor base, with strong retail participation, is a sound basis for future expansion. Although the growth of corporate earnings will slow from its peak in 2012, the outlook for Thai equities remains strong. This chapter contains interviews with Vorapol Socatiyanurak, Secretary-General, Securities and Exchange Commission, Thailand; Charamporn Jotikasthira, President and CEO, Stock Exchange of Thailand; and Chaipatr Srivisarvacha, CEO, KT ZMICO Securities Company.