The death of the Thai retail Investors.
To: Mr. Paiboon Nalinthrangkurn
Chairman, FETCO
The death of the Thai Retail Investors.
Consider that significant reasons for most Thai retail Investors abandoning SET investing is because of the inept Thai brokers and its marketing agents which too often "churn and burn" retail Investors which then loose money and then never return -while badmouthing the SET via social media and more.
The Thai brokerage industry has never seen itself as facilitators to help new wealth creation, only transactions agents to make commissions. In this industry such a Mandate always results in long term investor return failures. Today we all see the reality.
This has been a horror to the many Thai smaller cap stocks here which so increasingly get all but ignored, and so prevent new investment. Its stock prices dwindle as we have seen with sSet and MAI index near collapse in recent years: so these Thai back bone companies' cost of capital then soars.
Its this sad reality which will keep Thailand stuck in the middle income trap, as these companies make up some 2/3 of the Thai economy.
Fact is, Institutions anyway ignore smaller cap companies due to relative low liqudity which is their mandate.. So it is off the mark to put blame on these, by aserting high frequancy trading as the core reason why retail Investors are abandoning Thai stocks.
Paul A. RENAUD
THAISTOCKS.COM
Renaud & Associates Ltd.
Unbiased Thai Equity Research & know how.
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Paul A. Renaud.
- from Morgan Stanley, USA - to nearly 30 years on location analyzing the Thai Stock Market.
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https://www.thaistocks.com
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E-mail: paulren@thaistocks.com or, paularen@gmail.com
