Trinity switches focus

Given the tougher business environment due to global trends and Stock Exchange of Thailand (SET) reform, local securities firms must find new ways to run their business, because these factors will gradually reduce opportunities in the capital market.

"Companies will have to put more effort into finding new products," said Trinity chairman Pakhawat Kovithvathanaphong, adding that his company would be engaged in playing a major role in the Thailand Futures Exchange (TFEX).

He said the government should develop trading gold or para rubber on the TFEX, in order to increase alternative products. However, he said Trinity would try to push any new product to trade on the TFEX.

Regarding futures trading, Pakhawat said there would be plenty of room for growth, because there was a large base of wealthy and sophisticated investors in the country.

"Typically, astute investors trading in the futures marketing can make gains," he said, adding that this would improve soon when regulations on short selling were passed.

Trinity Securities managing director Kampanart Lohacharoenvanich said that for this year, the company planned to increase its share in the equity market 20 per cent.

"Our main business strategies involve promoting short selling, securities borrowing and lending and aggressive marketing campaigns," he said.

He said that the road map for the company going forward involved negotiations on the liberalisation of commissions, which began last year, easing of Securities Exchange and Commission (SEC) licensing requirements starting in 2012 and new SEC Acts being implemented this year.

The SET reforms, which will be revealed over the next three months, will be a key factor affecting the changes that securities firms will have to adjust to.

Kampanart said for this year following the SET reforms, the SET would target daily volume of Bt22 billion, up from Bt16 billion to Bt17 billion over the past few years.

Sasithorn Ongdee

The Nation