Analysts are wary of new free regime

At present, the stock market requires each brokerage to have at least four brokers. Almost all have more than the minimum requirement.

SAA secretary-general Sombat Narawuthhichai said the number of analysts over the past 8-9 months had declined by 5 per cent from 350 to 332.

"The association is worried that some brokers may cut the number of analysts when the sliding scale is implemented next year, or even that some might not have any analysts. Stock investing needs analysts to write research papers and provide recommendations, because investors still do not have enough information. If the new commission fee materialises, it may stall the development of the capital market," he warned.

The SAA is conducting a survey of those attending seminars at the current Securities Analysts Fair, which got underway yesterday. The survey will ask how many analysts each brokerage house expects to have when the sliding scale is implemented. It will forward the results to the Stock Exchange of Thailand and the Securities and Exchange Commission (SEC) for consideration, Sombat said.

Previously, the Association of Securities Commission (ASCO) asked the securities watchdog in vain to delay the sliding scale and other aspects of full deregulation.

The current fixed commission fee at 0.25 per cent and 0.2 per cent for traditional and online trading will be changed to the sliding scale on January 1, 2010 before the fully negotiable rate is implemented in 2012.