Aira Securities receives financial backing

"Although faced with higher competition in the future when the market is liberalised, we're ready to provide new products and services without seeking a partner," Nakorn Kolsrichai, managing director of the local brokerage, said yesterday after signing a financial support agreement with RHB.

Simon Anak Hollis, country head of RHB's Bangkok branch, said the bank had seen high potential in the brokerage's earnings growth.

Aira Securities CEO Nalinee Ngamsettamas said the funds would be used to develop the brokerage's securities business during the rest of this year.

The securities house will launch global trading and private-fund services, she said. SBL services are expected to begin next quarter.

Nakorn said the brokerage had adjusted its strategy by widening its customer base to both individual and institutional investors.

It will also increase its product offerings, he said.

This year, the company plans to increase its share of stock trading volume to 2.75 per cent, from 2.4 per cent now, by introducing more services, Nakorn said.

The company also wants to list on the stock exchange.

Meanwhile, Jay Mart yesterday appointed Asia Plus Securities as the underwriter for its initial public offering (IPO).

Jay Mart CEO Adisak Sukumvitaya said the telephone distributor was expected to debut on June 25 at above its IPO price of Bt1.80, representing a discount of 16 per cent.

Subscription to the IPO is scheduled for tomorrow and Thursday.

The company's earnings this year will come from its three core businesses: mobile phones, rentals and debt-collections, he said.

Asia Plus CEO Securities Kongkiat Opaswongkarn said this was the best time in two years to enter the equity market.

"Over the past two months, there has been an inflow of foreign funds into the stock market," he said.

Meanwhile, investment returns in such financial markets as bonds and debentures are much lower than those in the stock market, because interest rates are expected to reach bottom.

For the second half of the year, the economic recovery will be clearer, buoyed by the launch of the government's second stimulus package.

And if China's economy recovers quickly, it will be a boon to exporting countries, Kongkiat added.