Stock Exchange of Thailand Improves in Line with Plan.

Aug. 1--Many areas identified for development under the Capital Market Master Plan have shown concrete improvement since the plan was established two years ago, according to an assessment by the Stock Exchange of Thailand.

The plan set out ambitious targets aimed at increasing the size of the stock market, expanding the country's investor base, supporting the growth of funds and institutional investors and attracting new listings to the exchange.

Perhaps the most telling point has been the growth of the SET itself. In 2001, the SET Index ended at 303.85 points, market capitalisation was 1.6 trillion baht and it had 382 listed companies.

In comparison, the SET Index ended the first half of this year at 461.82 points, market capitalisation was 2.59 trillion baht and 394 companies were listed on the main board.

Yet other goals have missed the mark. The master plan envisioned 400,000 investment accounts in the system by the end of 2002, double the number two years earlier. But actual growth has been considerably less despite tens of millions of baht spent on investor education and marketing programmes.

SET officials have since downgraded the target to 300,000 accounts by the end of this year. Some 40,000 new accounts were opened in the first half, bringing the current figures to around 260,000.

Initiatives to strengthen corporate governance among listed companies have fared better. The SET estimates that more ...