Thai Brokers should re-invent themselves

PaulRen's picture

Thai Brokers should re-invent themselves. We actually meant, "newly invented brokers".

Thai stock brokers must adopt a different attitude. We are surprised at how long it is taking local brokers to understand that they must start promoting investing instead of trading. This is the single biggest theme missing here. Successful brokerage companies around the world learned long ago that preservation of client capital is the key to their own preservation and success. Brokers must attract safe savings capital under their management -- not burn the last few remaining clients on risky trades, which often do not work. As long as brokers keep their heads in the sand on this point, it will be difficult for them to be taken seriously and serious investment capital will stay away from the SET.

I wish to clarify our article in the Bangkok Post on December 21, 2000.

We do not suggest there is a need for more stock brokers in Thailand. As was might be understood in that article. We actually said, "newly invented brokers". With this we mean, we see a dire need for more progressive Marketing officers to start talking about values and dividends and low p/e's, as is found in the less liquid SET shares. The Thai brokers should re-invent themselves to investors real and substantial needs, this is our message! Brokers should not blame the bad year on the Thai bear market -as many smaller value shares have recovered rather well this year and in the past 2-3 years. We will fully document this yet one more time on January 2, '01.

So to attract some of the millions of people whom just now view the SET as a "gambling place". Let's face it, the majority do not invest in the local exchange, because they wrongly so believe it is just a glorified casino. We much disagree and for long have tried to convince brokers to promote long term investing. This to attract large amounts of capital, rather then just "trading seed money".

If the local brokers started talking and explaining a different tune, in time, many "clossett investors" would be far more attracted in shares for investment, rather then bashing the SET as a trading bin.

Paul A. Renaud. & Team.