From the middle of this month, Tisco Securities will start offering cross-border brokerage services by trading in the Hong Kong stock exchange in a move to expand its institutional client base ahead of the liberalisation of the securities industry in 2012.
Paiboon Nalinthrangkurn, Tisco Securities' CEO, said the company had decided to pounce on the opportunities before the competition gets fierce, and one of them would be to provide brokering services for local and foreign institutional investors on the back of good research. The firm has hired a foreign fund manager to lead its research team.
Despite moves to strengthen its research side, Tisco will still focus on retail investors who
constitute 40 per cent of its business.
After Hong Kong, which is considered a regional financial centre, Tisco will expand its coverage to other markets.
Though it is initially offering this service to institutional investors, retail stock buyers will be able to use the service in the fourth quarter. The company is realigning its computer system to support the trading link.
"We are not happy with the current 3-per-cent market share, and have adjusted our strategies to focus more on local and foreign institutional clients. We have welcomed a new head of research, and this new service should help expand our market share," Paiboon said.
There are around five brokers providing stock-trading services in other markets, including Country Group Securities (CGS).
For business expansion, Tisco has also shown interest in
forming a joint venture in Laos.
Paiboon said last week that the group would partner with Pongsawan Bank, one of the top three Lao banks, which would hold a majority stake.
Laos is allowing securities companies from China, South Korea, Thailand and Vietnam to open securities companies in the country. Though Laos is only letting one company from each of these countries to enter the market, it is allowing two companies from Thailand, KT-Zmico Securities being the other.
"We're interested in penetrating the Lao market due to its policy to privatise state enterprises. Initially, 10 state enterprises were enlisted for privatisation and listing on the Thai stock market. This gives us a great business opportunity," Paiboon noted.
However, brokering business in Laos might come later because the Lao Stock Exchange is indefinitely delaying its opening from the scheduled October 10. "Once the new opening date is set, we will immediately file for the creation of a joint venture," he said.