The Investment Analysts Association (IAA) is advocating for a deeper dive into the world of lesser-known Thai stocks. The association has proposed that stock regulators allocate some budget towards developing extensive analysis reports on all stocks within the Thai market, according to its Chairman.
Thailand’s stock market boasts 659 listed companies; 522 are traded on the Stock Exchange of Thailand (SET), and 137 on the Market for Alternative Investment. Despite the sheer volume of these firms, only 100-150 of these stocks – primarily profit-making and high-volume ones – are under the close scrutiny of the approximately 300 analysts working for stockbrokers, reveals Paiboon Nalinthrangkurn, Chairman of the IAA. Each broker typically employs around ten securities analysts, each monitoring approximately ten stocks.
The IAA believes that the disproportionate focus on a limited fraction of stocks could lead to overlooked opportunities in lesser-known Thai stocks. By seeking additional funding, the IAA aims to expand the breadth of analytical coverage, bringing these undervalued or overlooked entities into the spotlight.
Implementing this initiative would present a more comprehensive view of the Thai stock market, potentially uncovering unrecognised investment opportunities in lesser-known Thai stocks. This shift could also promote more balanced market participation, crucial for the overall health and stability of financial markets.
This proposal by the IAA underscores the paramount importance of research and informed analysis in guiding investment decisions. As the landscape of lesser-known Thai stocks continues to evolve, the need for extensive, all-encompassing market analysis becomes increasingly crucial. This proactive approach could be a game-changer, unlocking the full potential of the Thai stock market by shedding light on its lesser-known corners.