The Thailand Futures Exchange (TFEX), part of the Stock Exchange of Thailand (SET), began trading a new batch of 16 single stock futures based on SET50 stocks on 21 March.
The new single stock futures are based on stocks across nine sectors from the SET50 index, which is composed of the 50 largest Thai securities, and brings the total number of single-stock futures to 30.
The new securities are the third batch of single stock futures issued by TFEX and will provide investors with more investment alternatives, and enable them to better manage risks and increase profitability, TFEX managing director Kesara Manchusree noted.
Previously, TFEX’s stock futures trading depended upon 14 underlying stocks traded on the SET. In 2010, the daily average trading volume was 4,006 contracts, with 35,356 open interest contracts. The underlying stocks of the top-five most traded stock futures were for Krung Thai Bank, Italian-Thai Development, Quality Houses, Thoresen Thai Agencies and Land & Houses.
TFEX traded 36,673 contracts by the end of the day on 21 March: 12,881 contracts of SET50 index futures; 544 of SET50 index options; 10,354 of gold futures and 12,894 of single stock futures.
Meanwhile, Tokyo AIM, and the Market for Alternative Investment (Mai), which is a part of the Stock Exchange of Thailand (SET), have signed a memorandum of understanding (MOU) to explore opportunities for closer cooperation, including cross-listing of stocks.
“A listing on Tokyo AIM will open new financing options to Thai companies and enhance their profile in Japan, while allowing professional Japanese investors to benefit from attractive Thai investment opportunities,” said Tetsutaro Muraki, Tokyo AIM president and CEO.
“Thailand has seen remarkable economic and at the same time, many Japanese companies, particularly in the manufacturing industry, have been expanding into Thailand. Our role is to provide a suitable market platform for those who want to invest and expand alongside this economic growth,” added Chanitr Charnchainarong, president of Mai.