BOURSES
Almost all new stocks this year have seen their prices surge by up to 200% on their first days of trading, reflecting positive sentiment and investor confidence in the Thai bourses.
"I believe the momentum will continue throughout next year," said Chanitr Charnchainarong, executive vice-president of the Stock Exchange of Thailand.
Mr Chanitr, also president of the Market for Alternative Investment (MAI), said the Thai markets this year have been among the world's best performers in terms of returns, earnings growth and IPO performances.
For five years, new stocks have provided an average return on first-day trades of around 148%.
Of all new listings, only three failed to make it to their IPO prices on first trading days. Even so, all of them recovered to post gains as of yesterday.
Mr Chanitr said that one of the major factors driving the popularity of Thai IPOs are the undervalued prices compared to those in regional markets.
The latest member, JMT Network Services Plc, a debt collector debuting yesterday, saw its share price shoot up 200% to 12 baht against the par value of four in heavy trade worth 1.47 billion baht.
The stock also had no selling offer at the market close yesterday.
Previously, all new listings saw their prices skyrocketed in first-day trades as investors speculated on their high growth potential on the back of attractive profit margins.
The only exception was Asia Aviation Plc, the holding company of Thai AirAsia budget airline, whose price was unchanged on the first day.
Year to date, the SET's return is 25.90% while that of the MAI is 44.20%.
Analysts forecast the SET index will go sideways up next year to a range of 1,450 to 1,480 points.
Over the next 3-6 months, three stocks are scheduled to list on the SET and seven will likely be listed on the MAI.
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About the author
Writer: Nuntawun PolkuamdeePosition: Business Reporter
Article source: http://www.thethailandlinks.com/2012/11/28/share-surges-show-confidence/
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