The Stock Exchange of Thailand (SET) has reported a significant rise in trading activity in the first half of the year, including a 43% increase in equity volumes.
According to the exchange's own figures, daily trading volume in securities was THB 308 billion (US$1.01 billion) between January and June this year, a 43.69% increase over the same six month period in 2010. Market capitalisation of SET also grew during the period by 2.14% to US$280 billion.
Foreign investors accounted for 23% of total trading volume during the first six months of 2011, compared to 18.4% during the whole of 2010. While SET notes that foreign investors sold a net THB 14.8 billion (US$492 million) between January and June – which it claims was due to the concerns over domestic politics and the European economy – local investors were net buyers to the tune of THB 17.8 billion (US$592 million).
Year-on-year, average daily trading in derivatives during the first half of 2011 almost doubled to 30,997 contracts, with total volume reaching 3.69 million contracts in the first six months of the year, which SET claims was due to the introduction of more futures products, increased evening trading and better investor education.
SET is also expected to see an uptick in volumes upon completion of the Association of East Asian Nations trading link, which will connect it to stock exchanges in the Philippines, Singapore and Malaysia. The link is expected to go live in the first quarter of 2011.