The Stock Exchange of Thailand (SET) is allowing securities in the SET100 index to be sold short, providing investors with a better tool to manage risks from stock price movements.
Previously, short-selling was only permitted with stocks in the SET50 index. Short-selling has become a widely-used, effective tool for managing risks in portfolio investment, SET chief marketing officer Pakorn Peetathawatchai said.
Enlarging the scope of securities to be available for short-selling from the top 50 to the top 100 Thai companies will give investors more investment alternatives and risk management tools.
Securities in the SET50 index, exchange-traded fund (ETF) units, and ETF-linked funds will remain available for short-selling.
This is the latest in series of progressive developments SET has made over the last 12 months in preparation for demutualisation in 2011.
These have included the launch of an exchange-traded fund based on Chinese stocks and the introduction of non-voting depository receipts for overseas investors whose ownership of Thai stocks is restricted.
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