Thailand to Probe Irregular Surge of Newly Listed Stocks

The Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term of Thailand (SET) has decided to scrutinize the irregularities in stock trading as multiple new shares listed on the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term surged significantly on the first trading day.

As reported by the Bangkok Post on Friday, trading specifically with a high turnover volume will attract the attention of the investigators.

The Thai exchanges, the SET and the Market for Alternative Investment (MAI), listed the shares of three new companies recently.

The share price of Sri Trang Gloves Thailand Plc (STGT), one of the companies listed on the SET, spiked 78 percent on its first trading day, while the value of Silicon Craft Technology Plc (SICT) and I&I Group Plc (IIG), two companies listed on MAI jumped by 200 percent.

Notably, STGT is the world’s third-largest rubber gloves manufacturer, while both SICT and IIG are information technology companies.

It is possible that the demand for these company stocks was due to no impact on their operations by the COVID-19 pandemic.

IPOs Are Outperforming despite Economic Slowdown

SET President Pakorn Peetathawatchai told the local publication that the abnormal contribution of the newly-listed companies to the market capitalization also raised an alarm, forcing them to initiate an enquiry.

Normally, SET lists 30-40 new companies every year, all of which together contribute a total market cap of 250-300 billion baht. However, in 2020, only 5 new companies made their public debut on the Thai exchange with a combined market cap of 330 billion baht.

Despite the booming growth in the fresh listed companies, many companies halted their debut listing due to the ongoing economic downturn.

Peetathawatchai also detailed that the probe will not be limited to the IPO market, but all cases with some irregular movement in the share price.