Stock Exchange of Thailand Reports February Securities ADV Down 5.7% MoM

The Bangkok headquartered Stock Exchange of Thailand (SET) has reported its metrics for February 2015, where mixed results saw an increase in market capitalization, with average daily volumes on the SET dropping at the start of the month.

Among the highlighted results, market capitalization of SET and Market for Alternative Investment (mai) combined stood at $360.4 billion, raising more than 3.50% from a month earlier, while the market valuation of the Thai bourse dipped almost 3.97% MoM to $8.8 billion.

The official press release described the 5.7% drop in February’s ADV of SET and mai to $1.19 billion from a month earlier. In large part it was due to the limited trading volumes during the new year in China. Attractive prices and high Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term of the local stock market however were positively influencing the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and trading results, which led to SET index growth by 2.4% (to 1,332.37 points) from January.

It has to be noted that after three consecutive months of selling, foreign investors became net buyers of Thai shares. The total value of February’s purchases amounted to $5.36 million compared to selling a net of USD 236.66 billion a month earlier.

In terms of derivatives trading, the total monthly volume fell by 9.97% MoM to 191,873 contracts per day. The official press release states however that the decreasing transaction numbers on USD Futures, SET50 Index Options and SET50 Index Futures were a main culprit here.