The Stock Exchange of Thailand is investing about Bt2 billion into its new building on Ratchadaphisek Road with the aim of turning it into an international financial centre.
SET chairman Sompol Kiatphaibool said the exchange is at the stage of finding an architect as the building should share some features of another complex to be developed by American International Assurance (AIA) on a nearby plot.
"The exchange expects to spend about Bt1.94 billion on the construction of the building on the 5.24rai plot. The budget excludes interior design," he said. "We should have the architect soon so that construction can begin late this year or early 2011 and be completed in the next three years," he added.
The initial idea is to have a 20storeyed building, with a foundation that should support up to 26 floors.
The exchange owns a total of 14.9 rai on Ratchadaphisek Road, opposite Fortune Town. While its building will occupy 5 rai, the rest will be developed by AIA. The entire complex is designed to be an integrated financial centre, in line with the capital market development plan, which will strengthen Thailand's position in the international arena.
"This will be an international financial centre, like what exists overseas," Somkiat said.
Meanwhile, Yanyong Thaicharoen, director of the Research Institute for Capital Market, noted that Thailand's stock market has the potential to end higher thanks to the macroeconomic strengths. Listed companies should show positive earnings. Though the SET Index lost 1.71 per cent in May from the previous month, the index has risen 4.8 per cent.
"The index is volatile due to the European debt crisis. But the news has been discounted to some extent and foreign funds could flow back into Asia thanks to the strong economy," Yanyong said. "Thailand should benefit from this trend as our GDP is expected to grow 45 per cent this year," he added.
In May, foreigners remained net sellers for two consecutive months. In the first five months of this year, their netsell positions amounted to Bt20.4 billion, inclusive of Bt58.7 billion in May alone.
In the first five months, the daily turnover stood at Bt20.3 billion, compared to Bt18 billion throughout last year. Turnover in May alone averaged Bt23.9 billion, down 4.10 per cent from April. In May, newly listed companies raised Bt19.97 billion from the capital market, of which Bt19.38 billion were by BTS Holdings. Total fundraising during JanuaryMay reached Bt31 billion, up 154 per cent from the same period last year.