"Price spreads in overseas stock markets must also be considered. Now, the bid-ask spreads of stocks with high prices seem to be quite close to those abroad. Only low-price stocks have spreads that are too wide and their trading liquidity will be improved after the spreads are narrowed," president Patareeya Benjapholchai told reporters yesterday.

At present, changes to the price of a stock priced under Bt2 must be made in steps of at least Bt0.01 or multiples of Bt0.01.

The SET has assigned its market regulation division to carry out a feasibility study into the matter.

"There is no hurry but foreign investors have requested the SET to increase its range of products such as exchange traded funds," she said.

The SET in September will organise Thailand Focus 2007 by encouraging companies with market capitalisation of at least US$100 million (Bt3.5 billion) to participate.

"We would like to invite medium-sized firms to present their business plans to institutional investors who will join Thailand Focus because they are the target of this group of investors. If their stocks receive a good response from institutional investors, they will get the chance to raise funds for expansion and they'll become large-scale firms in the future," she said.

Total Access Communica-tion (DTAC), which said this week that it would distribute its Thai initial public offering shares to its customers first, is taking the right approach, she added. It is a way to attract new stock investors and it will come as a boon to both the company and the stock market.

DTAC's listing will raise the entire bourse's market capitalisation by Bt80 billion-Bt100 billion, depending on the eventual offering price, and the deal will whet investors' appetite in IPO stocks again, she said.

DTAC has set an indicative range of Bt35-Bt42 for its IPO price. Its share allocation in Thailand will make it the first company here to hold dual listings.

Pongpen Ruengvirayudh, senior director of the Bank of Thailand, said capital inflows to the stock market here helped strengthen the baht, but the rate of appreciation was still in line with the region.

"If local investors could take out money to invest overseas, it could help alleviate pressure on the baht and make demand and supply of the currency more balanced. Only 27 per cent of the amount approved [for offshore investment] last year was invested overseas," he said.

Last year, eight foreign investment funds were established to invest internationally, raising their number to 33.

Siriporn     Chanjindamanee,

Anoma Srisukkasem

The Nation