Asia

Stock Market Guide to the Stock Exchange of Thailand

The Stock Exchange of Thailand, also known as SET, is a trading system that is supported by a securities depository center, clearing house and a securities registrar. Together with a service division that offers assistance on securities information, they form a stock exchange that provides a secure trading environment for both investors and brokers. SET is regulated by the SEA (Securities and Exchange Act), and was established in 1975. The vision and mission of the Stock Exchange of Thailand, is to be a secure market for the trade of securities and to gain the confidence of its stakeholders. The SET wants to support the growth of the investor base, provide securities that are of a high quality and ensure that the technology being used is always at an international standard. As the national stock exchange of Thailand, it has a responsibility towards investors and the country as a whole. The Stock Exchange of Thailand’s indices include the SET50 Index, SET100 Index and the SET Index. The Industry Group Indices are divided into 8 groups, namely Financials, Property & Construction, Services, Resources, Consumer Products, Industrials, Technology and Agro and Food Industry.

Since 1991, the Stock Exchange of Thailand has been trading on a computer system named
ASSET, or
Automated System for the Stock Exchange of Thailand. Within the system,
are
two main trading methods, called Put-Through transactions, or PT, and
Automatic Order Matching, or AOM. The PT system gives brokers and
representative the opportunity to advertise their interests and they
are
able to trade with each other directly. Once deals have been finalized,
the
brokers and representatives will forward the details to the ASSET
system,
where it is recorded. The AOM system is fully automated, and receives
orders
from brokers and representatives that are sent to ASSET electronically.
Orders will then be sorted by the system by price and time priority.
ASSET
will match the buy orders and sell orders that are waiting in the
queue, and
will confirm to the broker, when the transaction has been completed.
Companies that are listed on the Stock Exchange of Thailand include the
Airports of Thailand, PTT, Thai Beverages, Bangkok Bank and Thai
Oil.

Within the Thailand economy, the agricultural sector definitely
stands
out as one of the most important sectors, as Thailand is the worlds’
biggest
rice exporter. Other products produced by this sector include teak,
which is
very valuable, tobacco, corn, rubber, tapioca, sugar cane, cotton and
jute.
The fishing industry is also very important to the economy. Thailand
exports
goods such as rubber, jewelry, computers, vehicles, footwear, seafood
product, plastic, appliances, rice and textiles. Their largest export
markets are China, the U.S, Malaysia, Singapore, Hong Kong and Japan.
Goods
are imported from China, Malaysia, Taiwan, Japan and the U.S. Imported
goods
consist of raw materials, fuel, consumer goods and capital goods.
Thailand
also supports a large tourism market, which has to be strictly
controlled,
as drugs, money laundering and drug money is a continuous fight, to try
and
eradicate these crimes from its shores.