ID :
14319
Wed, 07/30/2008 - 11:07
Auther :
Shortlink :
http://m.oananews.org//node/14319
The shortlink copeid
SET reduces target number of firms to be listed this year
BANGKOK, July 30 (TNA) – The Stock Exchange of Thailand (SET) has reduced the number of companies to be listed on the SET as well as the Market for Alternative Investment (MAI) this year to no less than 30 from 37 as targeted earlier.
SET chairman Pakorn Malakul Na Ayudhya attributed the downward revision of the target to the extension of corporate tax incentive offering to listedcompanies for another year.
With the extension, he said, many companies, who want to mobilize funds through SET, saw no need to accelerate listing on the market within thisyear.
In addition, some companies had postponed their plan to list on SET because they viewed the market sentiment is bearish after theprice/earning ratio had dropped sharply.
He conceded that since early this year, the SET composite index had dropped by 20 per cent, which is considered significant when consideringthe market fundamentals.
Prices of many blue-chip stocks are now lower than their fundamentals.
Consequently, he believed the index would not drop much more than the current level because blue-chip stocks with prices valued lower than theyshould be would draw interest from local and foreign investors.
In addition, returns on investment by listed companies are attractive with an average dividend rate staying at almost 4.5 per cent, which is higherthan the deposit rate.
Mr. Prakorn predicted the Thai economy this year would grow 5 per cent against 4.8 per cent last year due partly to the economic stimulus measures issued by the government. (TNA)
SET chairman Pakorn Malakul Na Ayudhya attributed the downward revision of the target to the extension of corporate tax incentive offering to listedcompanies for another year.
With the extension, he said, many companies, who want to mobilize funds through SET, saw no need to accelerate listing on the market within thisyear.
In addition, some companies had postponed their plan to list on SET because they viewed the market sentiment is bearish after theprice/earning ratio had dropped sharply.
He conceded that since early this year, the SET composite index had dropped by 20 per cent, which is considered significant when consideringthe market fundamentals.
Prices of many blue-chip stocks are now lower than their fundamentals.
Consequently, he believed the index would not drop much more than the current level because blue-chip stocks with prices valued lower than theyshould be would draw interest from local and foreign investors.
In addition, returns on investment by listed companies are attractive with an average dividend rate staying at almost 4.5 per cent, which is higherthan the deposit rate.
Mr. Prakorn predicted the Thai economy this year would grow 5 per cent against 4.8 per cent last year due partly to the economic stimulus measures issued by the government. (TNA)
