Overview of the Thai stock market in 2023, the index dropped 15% and the average daily trading value or volume was 51,082 million baht. Direct effect on securities company business There are as many as 37 of them, with the main income being based on the securities trading intermediary business. or broker As a result, in 2023, many brokers reported that profits had dropped completely when compared to 2022, which had an average daily volume of 71,226 million baht.
From reporting operating results for the year 2023 listed on the stock exchange, 5 of the 9 companies include: Asia Plus Group Holding Public Company Limited or ASP There was a profit of 407 million baht, a decrease of 15.03% from the previous year’s profit of 479 million baht, which was a decrease of 35.72% in securities brokerage income at 538 million baht from the previous year’s 837 million baht, including derivatives brokerage income. and fees and services decreased as well.
Globallex Holding Management Public Company Limited or GBX There was a profit of 48.48 million baht, a decrease of 31.23% from the previous year’s profit of 70.50 million baht from brokerage income which decreased 41.45% to 171 million baht from the previous year. As a result, GBX’s trading volume decreased to 1,202.08 million baht per day from 1,849.43 million baht. Market share decreased to 1.22% from 1.31% last year.
KGI Securities (Thailand) Public Company Limited or KGI There was a profit of 868 million baht, a decrease of 13.54% from last year’s profit of 1,004 million baht. This came from brokerage income which decreased 21% to 884 million baht from 1,115 million baht last year. Most of which decreased the most from securities brokers, which decreased 29% to 557 million baht from 780 million baht last year.
UOB Kay Hian Securities (Thailand) Public Company Limited or UOBKH There was a profit of 90.86 million baht, a decrease of 58.12% from the previous year’s profit of 217 million baht. Total income decreased from brokerage income decreasing 34.22% to 654 million baht from 995 million baht last year.
andXspring Capital Public Company Limited or XPG There was a profit of 106 million baht, an increase of 161% from the previous year’s loss of 171 million baht, although the share of profits from investments in Krungthai Xspring Securities Co., Ltd. decreased by 32.59 million baht.
Krungthai Xspring Securities had a decrease in net profit of 65.55 million baht due to brokerage income. Securities decreased by 328.59 million baht or 34.91% from the average daily volume decreased by 30.07%, while other income decreased by 23.63 million baht. Total expenses decreased by 286.67 million baht.
However, the company’s income from the business of X-Spring Asset Management Co., Ltd. and X-Spring Digital Co., Ltd. increased to 87.17 million baht. Interest income increased to 466 million baht. Total income was 621.71 million baht, an increase of 578%. From the previous year it was 91.57 million baht.
However, from the budget Kiatnakin Phatra Bank or KKP has subsidiaries. Kiatnakin Phatra Securities It stated that net fee and service income was 5,476 million baht, a decrease of 11% from the previous year, resulting from a decline in brokerage business. But still ranked No. 1 in share at 20.8%. Income from the investment banking business remains at a good level despite unfavorable capital market conditions.
Mr. Paiboon Nalintarangkun, Chief Executive Officer of TISCO Securities, as President of the Investment Analysts Association (IAA), said that the performance of the brokerage business in the first quarter of 2024 may not be very bright. The brokerage business can only support the business for now. This is because the trading volume situation in the Thai stock market is still only at the level of 40,000 million baht per day. Currently, the Thai stock market is still in a state of stagnation. But the trading volume is considered slightly better compared to the 4th quarter of 2023, while the Thai stock market index is lower than 1,400 points.
“What will the brokerage business bring? Especially in small brokers, looking at the trading volume of only 40,000 million baht, including the investment atmosphere is not good, both in the picture of the large market. and the IPO stock market has not yet returned to liveliness. Liquidity is not good. It doesn’t attract investors, so investors still don’t dare to invest.”
So what is expected is Seeing the government’s economic stimulus measures Whatever the measures are This will stimulate the economy to recover. Because now we cannot wait for the Federal Reserve (Fed) to reduce interest rates because the Fed is probably not going to reduce interest rates anytime soon.
Investors will see a picture of the economic recovery and must rely on the government’s policies. And if the economic picture improves, investors will dare to invest more. The company will be confident in bringing the company to raise funds (IPO), which will then increase liquidity in the stock market. Promote the trading value to return to vibrancy The brokerage business will be able to come back bright.
Mr. Kornpat Worachet, Director of Research and Investment Services at Krungsri Patanasin Securities, said the average trading level is 50,000 million baht per day. Below average over the past several years As a result, the brokerage business, which is already fiercely competitive, will be affected. If profits do not decrease, they will face losses.
At the beginning of 2024, the volume has not improved yet, but it is expected that if there is clear economic stimulus Plus the measures taken by the Stock Exchange to control short selling and program trading that have caused problems in the past. Until affecting the stock market volume which can be done directly It should make the Thai stock market volume return.
Proofreading….Suree Silawong
2024-02-28 03:00:00
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