What is the primary function of an exchange?
Here is a further short discussion regarding the contentious issue raised at this site regarding SET/MAI data, yields and ratio's which may show off numbers due to their "methodology" employed. Here is a brief exchange on that topic I just had with a Thai professional investor. His comments are in italic below.
Look, some data on yields and p/e ratio's seem off on the SET, do you have any comment on that?
Paul, a lot of public data (even Bloomberg) is wrong. That is why people rely on you for good analysis. BTW, we seldom rely on public data.
Hmm, thanks and agreed. I also have long learned not to rely on local bus. newspapers for this as well. But the exchange data?
Regarding the official SET site wrong data, this is very unfortunate as when long term rational investor get new information from a source, they then rightly so check the official SET web site so to confirm their initial impression. If then the SET/MAI reports wrong/low/off numbers, most investors just walk away fully assuming the data on the SET must be right, not their source.
Of course Bloomberg then as well gets it wrong as they surely get their numbers as well from the SET. All unfortunate and all working against to the further development of growing-up SET. In year 2012, when the SET wants/plans to go public most astute investors will just not pay for data which is mined with errors or calculating methodology which produces wrong conclusions. Like the TFUND current dividend yield!
I for one would think one of the most important responsibilities of any exchange is to report correct data on the companies which pay them to be listed there.
Best Regards,
Paul Renaud.
