The Stock Exchange of Thailand (SET) is considering a reduction in its set listing target for new company listings that benefit from Board of Investment (BoI) incentives this year. This revision is prompted by the significant impact of the recent floods on industrial estates in the Central region.
SET President Charamporn Jotikasthira disclosed that the exchange is contemplating adjustments to several of its 2024 objectives due to the widespread flooding across numerous provinces. He noted that this natural disaster may lead to reduced profit reports from some currently listed companies in the ongoing fourth quarter. Furthermore, brokers are expected to reassess their revenue forecasts for the year.
Charamporn emphasized that the electronics, automotive, and industrial-estate sectors were directly affected by the floods. However, he reassured that this would not substantially influence the overall SET Index, given their relatively low market capitalization. He also pointed out that the majority of the businesses impacted by the floods are not listed on the SET.
“Nonetheless, we must reevaluate our set listing target for new entries, particularly those companies receiving BoI incentives, as many are situated in the affected industrial zones,” Charamporn stated.
He also mentioned that listed companies have reported considerable damages to the SET due to the floods.
In a related development, SET Chairman Sompol Kiatphaibool announced that a consortium of capital-market firms had proposed the creation of a Bt500 million matching fund. This fund aims to support flood victims, focusing initially on aiding affected farmers, rather than other sectors like infrastructure or automotive, where most entities are not listed companies.
Sompol noted that the full extent of the stock market’s disruption due to the crisis remains uncertain. He optimistically suggested that the flood-impacted companies could potentially resume normal operations within six months, as the damage to factories is only partial.