The Stock Exchange of Thailand (SET) experienced record derivatives trading volumes in Q3, partly led by SET50 index futures.
Average daily derivatives trading volume on SET hit 61,616 contracts in Q3, the highest since SET established the Thailand Futures Exchange in 2006. The strong derivatives results were driven by trading in 50-baht gold futures, 10-baht gold futures and SET50 index futures.
Volumes in SET50 index futures were particularly strong in September, increasing 25.5% to 27,030 contracts per day. An average of 63,791 derivatives contracts were traded daily in September.
Equity trading volume on SET and its junior market, the Market for Alternative Investment, increased by 8.3% to THB32.88 billion (US$1.07 billion) compared to the previous quarter, but was 9% down on Q3 2010.
Foreign investors – who were net sellers to the tune of THB35.62 (US$1.16 billion) between January and September – accounted for 22.95% of total trading volume in the first nine months on SET, up from 18.4% in 2010.
According to SET, despite Thailand’s improving domestic political situation, the negative spillover of debt concerns in the US and Europe led to a sell-off by international investors in August and September.