Fitch: Volatile Stock Market, Strong Competition Pressure Thai Securities Firms

Stocks and Financial Services Press Releases Monday November 30, 2015 15:06
Bangkok--30 Nov--Fitch Ratings
Weakening economic conditions and volatile stock market would prove challenging for Thai securities companies in 2016, Fitch Ratings says in a new special report.

Brokerage income formed 68% of Thai securities companies' total revenue in 2014. As a result, volatility in securities trading volume would directly impact the companies' earnings. Furthermore, related business such as investment banking, margin loans, trading and asset management are also likely to be affected by stock market conditions.

The securities industry in Thailand remains highly competitive and fragmented with the top 10 companies accounting for about 50% of traded value during the first nine months of 2015. Competition is likely to continue increasing in the near to medium term as the barriers to entries are low. Nevertheless, Fitch expects securities companies' ratings in Thailand to remain largely unchanged in the near term despite the challenges. This is because the companies' ratings remain underpinned by group support (for securities subsidiaries) and long-established franchises with sound financial strength (for independent securities companies).

Fitch applies two rating approaches in rating securities companies in Thailand. The first approach is based on the agency's expectation that the companies will receive extraordinary support from their parents, if needed. The second approach is based on the companies' standalone profiles.

The special report "Thailand's Securities Companies – Strong Competition, Muted Environment Keep Pressure on Earnings" is available at www.fitchratings.com or by clicking the link in this media release.

Latest Press Release

Photo Release: KBank teams up with PTTOR to offer first KBank Service at Cafe Amazon, PTT Service Station (Ekamai-Ramintra)

Ms. Jiraporn Khaosawas (1st from left), Chief Executive Officer and Managing Director of PTT Oil and Retail Business PCL. (PTTOR), and Mr. Patchara Samalapa, KBank President, recently introduced "KBank Service" or deposit service at Cafe Amazon, PTT...

SHREIT announces distribution for unitholders of 0.2561 baht per unit All three existing hotels continue to generate excellent revenues in past three months Results from first 10 months of 2018 yield total distribution of 0.5997 baht per unit

Strategic Hospitality Extendable Freehold and Leasehold Real Estate Investment Trust (SHREIT) on 19 November 2018 announced distribution payment for the past four months (1 August - 31 October 2018) to unitholders at the rate of 0.2561 baht per unit. And...

KTC joins forces with Bangkok Airways Airline in launching seven brand-new KTC Bangkok Airways credit cards beyond the power of boutique, all-in-one cards.

KTC jointly with Bangkok Airways, celebrate their 13th partnership anniversary and Bangkok Airways' 50th anniversary, transforming seven KTC – Bangkok Airways credit cards to cover all card alliance networks including MasterCard, VISA and JCB,...

SEC Dates CAZ Filing Plans to Sell 80 Million of IPO Shares To Increase Working Capital and Serve More Future Works

The Securities and Exchange Commission Thailand (SEC) dated the filing of CAZ (Thailand) Public Company Limited or "CAZ" for listing in the Market for Alternative Investment (MAI). The Company plans to sell 80 million of initial public offering (IPO)...

UnionPay Launches UnionPay Celebrating You Campaign Offering exclusive privileges that let customers save more this festive season

Photo Caption – Mr. Pingfu Zheng (third from left), Thailand Country Manager, Union Pay International and Mr. Thanakorn Puriwekin (second from left), Director and Chief Films Officer, Major Cineplex Group, attended the launch event for UnionPay...

Related Topics