About stock markets
70% complete with 4 years of planning, the privatisation of SET & integration into global markets faces a sudden end.
Kittiratt opposes SET privatisation, 'Strong enough' despite recent slump by Nuntawun Polkuamdee & Darana Chudasri
Ambitious plans by the Stock Exchange of Thailand (SET) to position itself as the Wall Street of Southeast Asia could be thrown in jeopardy after the government announced its opposition to transforming it into a private entity.
The SET will hold a foundation stonelaying ceremony on Oct 19 for its new head office on Ratchadaphisek Road, presided over by Her Royal Highness Princess Maha Chakri Sirindhorn. The new building will have 59,400 square meters of office space and construction is expected to be completed in 2013.
The SET has been working for more than four years on a plan that would transform the organisation into a public company, a process known as corporatisation. Proponents argue that corporatisation, under which the SET would list its own shares on the exchange, would help strengthen the market's efficiency and competitiveness in the global capital markets.
But Kittiratt Na-Ranong, a deputy prime minister and commerce minister, signalled his firm opposition to the programme.
"The fact is other markets have corporatised to raise capital. But the SET is strong enough right now - there's no need to corporatise," said Mr Kittiratt, a former SET president.
Personally, I would scrap this plan altogether.
His comments came as the SET held a briefing yesterday about its new 2-billion-baht headquarters on Ratchadaphisek Road.
The new building, with 59,400 square metres of office space and including energy-saving and environmental protection innovations, will be completed in 2013 and is part of plans to position Ratchadaphisek as the country's new financial district.
The main building is designed to represent two fish swimming in opposite directions under the Chinese concept of yin and yang. It represents the volatility and uncertainty of capital markets.
Chairman Sompol Kiatphaibool said the current development plan called for the SET to be corporatised and links created with other regional exchanges to help support its long-term growth.
"The [Abhisit Vejjajiva] government supported this goal. But if the current administration disagrees, that's okay. We can proceed just as well under a different plan aimed at strengthening the Thai market's competitiveness," he said.
Most Asian bourses have already been corporatised, including the Singapore Stock Exchange and Bursa Malaysia.
Banyong Pongpanich, the chairman of Phatra Securities, cautioned that failure to integrate with the global market would only result in the SET shrinking in the future.
"Not changing essentially means remaining a domestic trading market," he said.
Corporatisation would strengthen the SET's efficiency by placing supervision in the hands of the actual owners under a clear line of control, said Mr Banyong.
He warned that stepping back from liberalising commission fees, brokerage licences and corporatising the SET risked marginalising the market, as foreign investors and large companies would go elsewhere in search of capital.
The current demutualisation process is 70% complete, while the Council of State is reviewing a law calling for the SET's transformation.
Pakorn Peetathawatchai, the SET's chief marketing officer, said the exchange must strengthen its efficiency and be prepared to compete in the global market regardless of whether demutualisation proceeds.
The SET index yesterday fell to its lowest point this year, closing at 855.45 points, down 13.86, in trade worth 34.4 billion baht
The exchange has now fallen by more than 15% since January and by nearly 20% in the past three months.
SET president Charamporn Jotikasthira said volatility would remain high due to the EU debt crisis.
"I admit I feel quite stressed. The declining market is reducing people's wealth. Market capitalisation has dropped from more than 9 trillion baht to 7 trillion so far," he said.
(Source: Bangkok Post, Kittiratt opposes SET privatisation, 'Strong enough' despite recent slump, 5/10/2011, Nuntawun Polkuamdee & Darana Chudasri, link)
Capital Markets Vocabulary
Stock Exchange of Thailand (SET) - Thailand's stock exchange (See Wikipedia)
capital markets - the financial markets and stock exchanges where companies and governments sell shares, bonds and other securities to get the money they need ot run their business (See Wikipedia)
capital - money invested in a business (See glossary)
strengthen the market's efficiency and competitiveness in the global capital markets
personally, ..... - my opinion is that .... (which apparently may soon become official government policy!)
demutualisation - "the process by which a customer-owned mutual organization (mutual) or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, members of a mutual usually receive a windfall payout, in the form of shares in the successor company, a cash payment, or a mixture of both" (See Wikipedia)
the current demutualisation process is 70% complete
privatisation - change a government owned company into a privately owned company (owned by stockholders) การแปรรูปรัฐวิสาหกิจ
corporatisation - the process of turning an organization into a corporation (with stock shares sold on a stock exchange)
corporatised to raise capital
SET would list its own shares on the exchange
transform - to change from one form into another เปลี่ยนไปสู่อีกสิ่งหนึ่ง
public company - a company whose stock shares can be bought and sold on the stock exchange
transform the organisation into a public company - turn the organisation into a company with stock shares bought and sold on the stock exchange
slump - a period when an economy is much less successful than before and many people lose their jobs ช่วงเศรษฐกิจตกต่ำ
ambitious plans - plans for making a very great and high level achievement (so difficult and risk of not succeeding)
product positioning - 'In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization" (See Wikipedia)
position itself as the Wall Street of Southeast Asia - working to get people to perceive and see Bangkok as a financial center for Southeast Asia
position Ratchadaphisek as the country's new financial district
thrown in jeopardy somet project, plans or important event may not happen
opposition - strong disagreement with a plan or policy ความขัดแย้ง
transforming - changing; making someone or something completely different เปลี่ยนแปลง ปรับปรุงใหม่
entity - something which exists apart from other things, having its own independent existence
private entity - a privately owned company
transforming it into a private entity - changing it into a privately owned company
foundation - the part of a structure of a building that is below the ground and supports the rest of it รากฐาน
ceremony - a formal public event งานพิธี
foundation stonelaying ceremony - the idea that "the first stone set in the construction of a masonry foundation, important since all other stones will be set in reference to this stone, thus determining the position of the entire structure. Over time a cornerstone became a ceremonial masonry stone, or replica, set in a prominent location on the outside of a building, with an inscription on the stone indicating the construction dates of the building and the names of architect, builder and other significant individuals" (See Wikipedia)
head office - the main office for a company or organisation, where the head of the company works from
presided - to be in charge of a formal meeting or ceremony เป็นประธาน
office space - offices rented by businesses in large buildings (so many square meters of "space")
construction - the work of building or making something, especially buildings, bridges, etc. การก่อสร้าง
expected - believe will happen คาดว่า (จะเกิดขึ้น)
construction is expected to be completed in 2013
process - a series of actions that you take in order to achieve a result แนวทางปฏิบัติ, กระบวน, วิธีการ
proponents - people who support some plan or idea (want it to happen in the future)
efficiency - waste little time, energy and resources in doing a task (minimize time, energy and resources in performing a task) (See glossary) การทำงานอย่างมีประสิทธิภาพ คุ้มค่าเวลาและใช้พลังงานหรือต้นทุนในการผลิตน้อย เพื่อให้ได้ผลผลิตมาก
competitiveness - how well a business can do compared to other firms (does it have lower price or higher quality?) การแข่งขัน
global - throughout the world ทั่วโลก ทั้งโลก
signalled his firm opposition to the programme - showed that he did not want the programme to happen
scrap - to get rid of; to stop using or accepting เลิก, ทิ้ง
scrap this plan altogether - end this plan completely
briefing - a short meeting to provide needed information to people การแถลงการณ์สั้นๆ
headquarters - the place where an organisation or company has its main offices กองบัญชาการ สำนักงานใหญ่
energy-saving and environmental protection innovations - special technology in the building to save energy and protect the environment
financial district - the area of a city where banks and investment companies are located (Wall Street is the financial district of New York in the US)
X represents Y - X is an outward sign of Y that you can see
concept - a principle or idea ความคิด
volatility - a measure of risk in financial markets, the degree to which asset prices swing up and down (See glossary) อัตราความเสี่ยงต่อการลงทุนทางการเงิน
current - of the present time ปัจจุบัน
current development plan - the plan that the organization has now of how it will grow and improve in the future
links - connections ความเชื่อมโยงกัน
links created with other regional exchanges - Southeast Asian stocks can be traded in any other Southeast Asian country
administration - one government that a country has for a period of time
proceed - to continue as planned ดำเนินการ
caution - warn, tell to be careful and watch out for danger
integrate - to combine things of different types in one effective system รวมเข้าด้วยกัน
shrink - grow smaller
shrink in the future - grow smaller in size in the future
failure to integrate with the global market would only result in the SET shrinking in the future
essentially - for the most part, basic important idea or "essence" ที่สำคัญที่สุด
X essentially means Y - Y is the basic idea behind X
domestic - within the country only ภายในประเทศ
domestic trading market - trading only stock shares from inside the country (not from outside)
supervision - the process of making sure that something is being done properly การควบคุมดูแล การตรวจตรา
actual - real; existing in fact จริง
clear - easy to understand
line of control - the ability to control decisions and what happens in an organisation that each level of managers from the highest to the lowest have
placing supervision in the hands of the actual owners under a clear line of control
fees - money that you pay to be allowed to do something ค่าธรรมเนียม
commission fees - the percentage of each buy and sell transaction that a stock broker charges the person buying or selling stock
liberalise - set free, stop controlling and fixing prices
liberalising commission fees - allowing commission fees to freely move up and and down like other prices (right now they are fixed at an artificially high price giving a small number of brokerages what amounts to a monopoly and easy way to make money)
stepping back from liberalising commission fees - decide not allow commission fees to freely move up and down with supply and demand
stock broker - a person whose job is buying and selling stock shares for other people and giving advice about what shares to buy (See Wikipedia)
stock brokerage - a company that buys and sells stocks for other people (See Wikipedia)
brokerage - a business that sells things for other people or businesses (See Wikipedia)
brokerage licences - official permission from the government for a company to operate as a brokerage
marginalise - make smaller and less important
marginalise the market - make the stock market smaller and less important
risked marginalising the market - the danger of making the stock market smaller and less important
search - to look somewhere carefully in order to find something ค้นหา
in search of capital - looking for people who want to invest in their business (provide money to start or expand a business)
foreign investors and large companies would go elsewhere in search of capital
Council of State - the group of legal experts that checks advises the Prime Minister and cabinet on whether a policy or proposed law follows general principles of law before the law or policy is put into action
reviewing a law - checking a law carefully
transformation - change
SET's transformation - big changes in how the Stock Exchange of Thailand operates
trade - the buying and selling of goods or assets (here: stock shares) การค้าขาย
crisis - an urgent, difficult or dangerous situation วิกฤต วิกฤตการณ์
EU debt crisis
admit - to agree that something is true, especially when you are unhappy, sorry or surprised about it ยอมรับ
stressed - nervous and anxious about what will happen (in the future, for example)
declining - worsening
wealth - how much money and assets a person or country owns
the declining market is reducing people's wealth.
capitalisation - the total value of a company's stock shares (determined by their selling price on the stock exchange)
market capitalisation - the total value of all stock shares traded on the stock exchange
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