Seamico said in its recent report it had downgraded its recommendation for the securities sector from neutral to underweight. The firms' average daily turnover in the first half of this year was Bt18 billion, lower than the full-year prediction of Bt20 billion.

"We do not see any catalyst to boost the market in the second half of 2006. As a result, we are revising down our full-year average daily turnover assumption to Bt18 billion, which is close to that in the first half of 2006," the company said.

Average daily turnover in the second quarter was down 28 per cent to Bt15.1 billion from Bt20.9 billion in the first quarter. Trading volume in the first half declined by 1.68 per cent to Bt18.2 billion from Bt18.5 billion in the first half of 2005.

Given the second quarter's 28-per-cent drop from the previous quarter, the average daily trading volume and the overall 2-per-cent decline in market share, the brokerage income of the 12 securities companies, under Seamico's coverage, will fall by 37 per cent to Bt1.75 billion from Bt2.78 billion the previous quarter.

The 12 securities firms are Kim Eng Securities (Thailand) (KEST); KGI Securities (Thailand) (KGI); Globex Holding Management Plc (GBX); Capital Nomura Securities Plc; Trinity Wattana Plc; Syrus Securities Plc; Phatra Securities Plc; UOB Kay Hian Securities Plc (UOBKH); Adkinson Securities Plc (ASP); Asia Plus Securities Plc; Sicco Securities Plc  and Bualuang Securities Plc (BLS).

"We expect GBX will post the highest drop in brokerage income quarter-on-quarter followed by KGI and KEST," Seamico Securities said.

"Although we are downgrading our sector rating, ASP, BLS, KGI, Phatra and UOBKH share prices have declined significantly, resulting in upsides now looking attractive again. Moreover, as these companies have a strong financial position to be able to cope with the sluggish market, we recommend 'buy'," Seamico Securities said.