HoonSmart.com >> Treasury cooperates with SEC-Market announces measures to stimulate capital market Increases funds to buy long-term shares “Pichai” dusts off the creation of Vayupak Fund – Treasury proposes to the Cabinet to amend the terms of the ThaiESG Fund, increase the credit limit from 100,000 baht To no more than 300,000 baht, reducing the time from 8 years to 5 years and expecting new investment funds worth 30 billion. The Minister of Finance confirms that he will not cancel short selling. Fakorn revealed that he studied with the Securities Exchange Association to pay attention to the trading volume that investors can obtain. So as not to be too much, the Secretary of the SEC issues a timeline for raising confidence
On June 24, 3 agencies jointly announced measures to advance the capital market. The Ministry of Finance is preparing to present it to the Council of Ministers within the next two weeks. To adjust the conditions of the tax fund, ThaiESG expands the maximum investment in income tax deductions. From the original maximum of not exceeding 100,000 baht to a maximum of not exceeding 300,000 baht and reducing the holding period to 5 years from the date of purchase from 8 years to be in line with the goal of enhancing savings. By investing in the capital market and motivating fundraisers to focus on sustainability.
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, said that the government sector was still studying the success of other forms of funds, such as the VIOPAC Fund. Which has been successful in the past in enhancing savings and investment mechanisms for citizens through the public sector joint investment model. It is an open-ended fund registered with the SET, divided into Unit A for investors and Unit B for the Treasury and other agencies. In this regard, Unit A. Earn real rewards at an annual rate of at least 10 years, with the investment paid back by Unit B holders, in addition to driving and encouraging investment in the stock market in other ways, such as grouping industries that represent future trends and developing publicly traded stocks. Funds (ETFs) and personal accounts for long-term investments. That you get tax benefits, etc.
“We are looking at what would be better and stronger. Start doing your homework. Look at the law to see how much needs to be done, or if it can be done at all,” Mr. Pichai said. “It will probably come out in no more than a month and a half”.
In addition to promoting the funds coming into the capital market. There must be measures to raise confidence in the capital market. What can you believe? Since there are still short selling and trading bots out there, how will the SEC regulate them along with the exchange?
As for the proposal to abolish short selling such as some foreign stock markets to increase investor confidence, Mr. Pichai said he does not agree and there will be negative effects in the long term. Because it contravenes international principles foreign investors are required to use bare pants, the market takes care of it, allowing investors to register and sign contracts. If you do something wrong you will be punished. As for long-term solutions, we have to wait for legislative changes.
“Everyone who comes to play stocks in Thailand must register. Use the tools and laws here. Because Thai law prohibits bare pants. This will make people not dare to make mistakes.”
The ThaiESG fund, which opened for sale at the end of last year in just one month, was able to raise nearly 6,000 million baht this year, after adjusting to new conditions, said Ms Purnanong Busaratrakul, Secretary-General of the Securities and Exchange Commission. There will be an additional 4-5 months to sell the investment units, and it is believed that there will be more money coming into the capital market, approximately 30,000 million baht, and the government is expected to lose approximately 13,000 million baht in income from tax collection. Retroactive tax deduction as of January 2024.
In addition, the investment also added more types of listed companies with good governance for the fund to invest in. From the beginning, I focused only on the environment. This will increase the selection of stocks that can be invested in the ThaiESG Fund by approximately 200 stocks, out of 128 stocks.
As for improving confidence in the capital market, measures have been issued continuously according to the planned schedule, and both the Securities and Exchange Commission and the Stock Exchange will closely follow the results of the measures and review the measures as appropriate to the situation. Please ensure that misbehavior is considered an unfair act and when this occurs, strict enforcement action will be taken. The level of seriousness of the crime will be higher, including setting higher fines for violations and amending laws to be more stringent. To prevent inappropriate behaviour
“If the medicine is not strong enough, I am ready to add more medicines. Although I am not sure it will go away, but it will get better,” said the Secretary General of the Securities and Exchange Commission.
Mr Phakorn Pitatawachai, Director and Director The Stock Exchange of Thailand said that more than half of the listed companies reported higher net profits than analysts expected. Because some groups have recovered, such as exports and pharmaceuticals, but there are still some groups that have not yet recovered, such as energy and finance, which are relatively large compared to the market, affecting the index The level is much lower than the average of the past five years in almost every industry. Therefore, this is a good time for investors to consider a return to investment. Foreign investors are selling less
As for adjusting the terms of the ThaiESG Fund, there will be money coming in to invest. But the necessary measures must be taken to raise confidence in the capital market, in conjunction with solving difficult problems. Whether short selling or trading schemes that may affect investor confidence, the SEC, along with the SET and the Association of Thai Securities Companies (ASCO), is pushing for various measures and accelerating measures that take into account the impacts in many areas carefully and clearly. It is likely to be implemented by early July 2024.
In addition, there will be various measures that will be implemented continuously according to the planned schedule. Continue to add various trading monitoring measures that are gradually being rolled out. To reduce volatility and helps protect investors who come to invest in the Thai stock market and helps create positive sentiment, making investors feel confident. Returning to investing in the Thai stock market is currently being studied in cooperation with the Securities Association. Pay attention to the trading volume that investors have. In order not to give too much credit limit.
As for the stock market, on June 25, 2024, the index closed at 1,316.73 points, up 10.32 points or +0.79%, with a trading value of 38,354.24 million baht, with foreign investors continuing to sell for 1,087.97 million baht, while Thai institutions were net buyers of 495.97 million baht. 1 million baht Thai investors buy back 305.93 million baht
Shares rose today, said Mr Natavon Khamtakroya, Director of Securities Analysis at Yuanta Securities (Thailand). Pending the announcement by the Ministry of Finance, the Stock Exchange and the Securities and Exchange Commission to build investor confidence tomorrow (June 25), there will be an announcement of short-, medium- and long-term economic stimulus measures.
As for stock markets in Asia, they moved steadily. European markets were trading higher this afternoon. Tune in on Friday (June 28) for key US personal consumption expenditures numbers.
The investment trend tomorrow (June 25) is likely to swing sideways to the upside with support level 1300-1305 points and resistance level 1320 points.
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