According to deputy director Songsak Chockudomman, increased vigilance in scrutinising speculative trades by the Stock Exchange of Thailand (SET) has caused a drop off in trading volume.

"Our market share in the past few months has fallen sharply. This is mainly due to a dip in trading volume by retail investors compared with foreign investors.

"Many large investors have slowed trading because of the

SET policy of looking closely

at activity in speculative stocks," said Songsak. "Recently, the SET has been keeping a close watch on stock trading. Specifically, the SET strictly controls credit-line limits or it requests records. We must follow these regulations. However, some clients find it inconvenient and have, as a result, slowed their activity on the SET."

Songsak added some sales staff had been lured to other brokers and taken clients with them.

"All these reasons have directly affected our market share," said Songsak.

To counter staff loss the company has adopted a strategy to keep workers happy and generate loyalty.

Songsak believes success in

this effort will see the company's market share rebound to about

1.5 per cent next year.

"We've introduced a number of staff activities, including internal sports competitions and a karaoke contest, to tighten the relationship among staff. We believe it can help reduce staff departures and improve our market share," Songsak explained.

Meanwhile, Syrus has scrapped plans to establish an asset-management arm. It considered the competition increasingly intense.

It has witnessed many mutual funds failing as managers were unable to meet Securities and Exchange Commission requirements.

SET senior vice president for market regulation Supakit Jirapraditkul insisted closer scrutiny of stock trading had not affected investor sentiment.

He said exchange policy was normal and responsible.

Supakit believed the market was experiencing a dull period because of "uncertainty".

The market bounced back after the government announced it would push ahead with mass-transport infrastructure construction.

"Investigation [of stock trades] is normal. We do it in a careful manner. There are no double standards and we do not have specific targets.

"When we investigate [trades] we do not consider whom we are investigating. The movement of the stock market is the main factor considered.

"If something unusual happens, we'll investigate who's behind unusual stock movements," Supakit said.