Thailand stock market outlook for 2023 The index has fallen 15% in the past and the average daily trading value or volume is 51,082 million baht. The direct impact on the business of securities firms is 37 of them, whose main income is based on the business of securities trading intermediaries or brokers, resulting in results for the year 2023. Many brokers report that profits have fallen compared to 2022 on average. The daily volume is 71,226 million baht.
From reporting operating results for 2023 listed on the stock exchange, 5 of the 9 companies include: Asia Plus Group Holding Public Company Limited or ASP Profit was 407 million baht, a decrease of 15.03% from the previous year's profit of 479 million baht, which included a 35.72% decrease in securities brokerage income of 538 million baht from 837 million baht the previous year, including derivatives brokerage. Income. Also charges and services have come down.
Globalex Holding Management Public Company Limited or GBX Profit was 48.48 million baht, down 41.45% from 171 million baht a year earlier. As a result, the trading volume of GBX decreased from 1,849.43 million baht per day to 1,202.08 million baht. The market share decreased from 1.31% to 1.22% from last year.
KGI Securities (Thailand) Public Company Limited or KGI Profit was 868 million baht, down 13.54% from the previous year's profit of 1,004 million baht, down 21% from 1,115 million baht last year to 884 million baht. Most of this came from securities brokers, which fell 29% to 557 million baht from 780 million baht last year.
UOB Kay Hien Securities (Thailand) Public Company Limited or UOBKH Profit of 90.86 million baht, down 58.12% from the previous year's profit of 217 million baht. Total income decreased by 34.22% from 995 million baht last year to 654 million baht due to lower brokerage income.
AndXspring Capital Public Company Limited or XPG Krungthai Xspring Securities Co., Ltd. Although the share of profit from investments decreased by 32.59 million baht, the profit of 106 million baht increased by 161% from the loss of 171 million baht in the previous year.
Net profit decreased by 65.55 million baht due to brokerage income from Krungthai Exchange Spring Securities. Bonds were down 328.59 million baht, or 34.91% from the average daily volume, while other income was down 23.63 million baht.
However, the company's income from fund management business X-Spring Company Limited and X-Spring Digital Company Limited increased to 87.17 million baht. Interest income increased to 466 million baht. Total income was 621.71 million baht, an increase of 578. % 91.57 million baht over the previous year
However, Kyatnakin Patra Bank or KKB has subsidiaries from the budget. Kiatnakin Batra Securities net fee and service income was 5,476 million baht, down 11% from the previous year, a result of a decline in brokerage business. But still top with 20.8% stake. Income from the investment banking business remains at a good level despite experiencing unfavorable capital market conditions.
Chairman of the Investment Analysts Association (IAA), CEO of TISCO Securities Mr. Baipoon Nalindarangun said the performance of the brokerage business in the first quarter of 2024 may not be very bright. The brokerage business can only support the business for now. Trading volumes on Thailand's stock market are limited to 40,000 million baht per day. Currently, the Thai stock market is still stagnant. But the trading volume is considered slightly better compared to the 4th quarter of 2023, while the Thai stock market index is below 1,400 points.
“What does brokerage bring? Especially in small brokerage firms, looking at the trading volume of 40,000 million baht, the investment environment is not good, both the picture of the larger market. And the IPO stock market is yet to come back to life. Cash flow is not good. It did not attract investors, so investors still did not dare to invest.
Hence, economic stimulus measures can be expected from the government. Whatever the measures are, it will stimulate the economy to recover. Because we can't wait for the Federal Reserve (Fed) to cut interest rates soon, because the Fed isn't going to cut interest rates anytime soon.
Investors will see a picture of economic recovery and should be confident about the government's policies. And if the economic condition improves, investors will dare to invest more. The company will be confident of bringing up the company to raise funds (IPO), which will increase liquidity in the stock market. Encourage business value to return to vibrancy. Brokerage can turn bright.
Krungsri Patanasin Securities Director of Research and Investment Services Mr. Cornbut Voraset said the business averages 50,000 million baht per day. Below average over the past several years, the already highly competitive brokerage business will suffer.
At the beginning of 2024, the volume has not yet improved, but it is expected if there is a clear economic stimulus. Plus measures taken by the stock exchange to curb short selling and program trading have caused problems in the past and affected stock market volume. This should allow Thailand's stock market volume to return to what can be done directly.
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