Thailand Futures Exchange January Totals Show USD Futures ADV Down 17.5% Over December

The Bangkok-based Thai Bourse, including the SET and TFEX, have reported January 2014 trading metrics, with mixed results as an

tfexThe Bangkok headquartered Stock Exchange of Thailand (SET) has reported metrics for January 2014, including across the Thailand Futures Exchange (TFEX), where mixed results saw an increase on the SET, with volumes on the TFEX dipping at the start of January.

Among the TFEX results, USD Futures traded on the Thai derivatives bourse had their average daily trading volumes (ADV) decrease by 766 contracts over January 2013, ADV of 1,348. This represented a year-over-year (YoY) drop of 56.8% to 582 contracts for January, or 17.5% lower when compared to December totals of 706, from a MoM comparison.

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setThe Thai Bourse Market report for January included highlights reflecting  ADV up 11% month-over-month (MoM) to $983 million, on the SET.

Market cap on the SET stood at $350 billion, down 4.05 % from end of 2013, and derivatives trading  on TFEX was down 5.2 % MoM at 53,692 contracts per day. The total contracts traded across TFEX’s product line, as can be seen in the chart below, had fallen 13,080 in January from 66,772 the same time last year, a decrease of 19.58% YoY, however, since 2006 the combined ADV across these TFEX traded derivatives have been on the rise from a yearly totals perspective.

From a MoM look, the totals on TFEX were also down by 5.2%, a less moderate drop of 2,950 contracts over its December 2013 combined average daily volume of 56,642.

Source: TFEX
Source: TFEX

While the value of Securities traded in January rose from a month ago, it had dropped sharply from a YoY comparison.

The official press release described the 1.9% drop in the SET index in January, when compared to its 2013 year- end, as being in line with other key global markets, dampened by the weakness of China and U.S. economic outlooks, the U.S. Federal Reserve Bank’s quantitative easing, and uncertainties of economic stability among emerging markets.

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Foreign investors have been selling Thai shares for the past three consecutive months, selling a net $415 million in January, as per the announcement, with a downward trend similar to the stock markets in the Philippines and South Korea.

January 2014 [Source: TFEX]
January 2014 [Source: TFEX]
Nearly 40% of the exchange volumes comes from the top 5 members by market share of volumes, as can be seen in the graph below.

Combined average daily trading value of SET and Market for Alternative Investment (MAI) was at THB 31.76 billion (approx. USD 983 million), or up 11% from a month ago and down 45.2% YoY, while daily trading volume of derivatives dropped 5.2% from December 2013 to 53,692 contracts per day.

For precious metals, LBMA Gold A.M. and Silver Fixing for the end of January 2014 were at $1,246.50 and $19.31, respectively. The Brent Index was at $108.15 and the USD/THB exchange rate hovered around 32.9950. The average daily trading value for SET was 31,078 million baht, a decrease of 11.87% from the previous month.

TFEX Gold Futures January 2014
TFEX Gold Futures January 2014

Thailand had previously banned Bitcoin, as reported by Forex Magnates last July, only to reopen its doors to it before reneging on its decision, as per recent reports.

TFEX also provided the following chart, to the left, in its monthly update, showing Gold Futures volume and open interest for last month, both which had risen steadily.



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