SET exchange and brokers need reform.
The senior SET leadership is lame and in need of reforms.
Here is the case of the lame SET exchange which has an equally dormant leader at present. Surely some changes are welcome besides overdue and I am delighted the able current Thai finance minister sees this as we do.
This is the unfortunate bear case of the SET exchange itself. Which is one (but not the only) reason why the average SET/MAI stock keeps trading at a hefty p/e discount to the region.
The SET total market cap. is now and for some years already one of the lowest in SE Asia, this vs. respectably in the middle, before the 1997 Asian financial crisis. Most local brokers just continue their daily trading mentality around big or speculative choices, and so utterly fail to attract more rational long term investors. [i]Trading is speculative, and most investors just don't want to speculate with their hard earned savings. [/i] Hence, som 18 trillion Baht cash are just sitting idle in the local banking system..at near 0% interest! For years already.
The SET estock exchange in many' view does not have a charismatic leader and regulations can be sporadically enforced. The again in the US its not much better of late.
The SET leaders value the status quo and are week in mandating a higher level of local broker behavior. Example teaching people how to invest, rather then to day trade speculating. Sadly and wrongly so, most foreigners, expats and Thai's have a bad impression about investing in any Thai stocks, and this has been so for too many years. And its not changing.
There are soo many property magazines in Thailand -but not one which publishes' about responsible SET/MAI investing for the long term. Which if done properly has been messy for sure, besides uneven; yet nevertheless wealth creating over the years. As I have shown here since 1997.
Best Regards,
Paul A. Renaud.
