KGI to focus on derivatives
KGI to focus on derivatives
KGI Securities aims to increase its derivatives client base by 50% to 3,000 by the end of next year.
Market share is forecast to rise to 9% on the Thailand Futures Exchange from 8.4% now. KGI ranks third in terms of market share on the TFEX, behind top-ranked Kim Eng Securities and Phillip Securities.
Suchada Sodthiphapkul, managing director of KGI Securities, said the brokerage plans to more aggressively market its derivative services, and is in the process of preparing for the launch of new products such as mini-gold futures contracts and interest rate futures.
She said that KGI had 301 sales agents with TFEX licenses, up from 201 at the end of September.
The company has 2,000 TFEX customers, mostly individual investors. Fewer than one-quarter are regular traders with at least one transaction per month, while around 800 trade on the order of once per year.
Mrs Suchada said the planned introduction of mini-gold futures in February should help attract more investors to the gold market.
The new contracts will be worth 10 baht-weight (151.6 grammes) of gold each, or five times less than the currently traded 50 baht-weight contracts.
“More than 50% of the [gold futures] market is led by five brokers tied to the gold industry. It’s quite hard to compete in the market right now, as investors trading contracts are required to put up a relatively high amount. But we believe we can compete for smaller customers,” said Mrs Suchada.
The Stock Exchange of Thailand projects derivatives turnover this year to average 10,618 contracts per day, rising to 15,078 next year with the launch of smaller gold futures contracts. By 2011, trading volume on the TFEX is projected to reach over 25,000 contracts per day.
Published: 31/10/2009 at 12:00 AM
Newspaper section: Business
http://www.bangkokpost.com/business/economics/26622/kgi-to-focus-on-derivatives
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on Oct 31 2009. Filed under Business.
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