The​ death​ of​ the​ Thai​ retail​ Investors.

paulren's picture

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​ market​ing​ 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​ it​self​ as​ facilitators to​ help​ new​ wealth​ creation, only​ transactions​ agents​ to​ make​ commission​s.​ 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​ ignore​d, 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​ liqud​ity​ 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​

Renaud & Associates Ltd.
Unbiased Thai Equity Research & know how.
Paul A. Renaud.
- from Morgan Stanley, USA - to nearly 30 years on location analyzing the Thai Stock Market.
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