SET: how to invest

[chingmai331]

Stock Exchange of Thailand.  New IPO coming forth that interests me so i thought i'd ask how i could get involved.  Some rubber glove maker in So. Thailand needs more cash to build new factory in order to make more rubber gloves to support the world's current, and future, hygiene needs. 

If you know how to invest in the SET, plz let me know.

thnx

[DaRoadrunner]

I would suggest that whilst your rubber glove maker may have lots of orders now, this is temporary and will decline after Covid is gone.

 

Conversely, there is considerable pent up demand for rubbers of a different kind, that will explode exponentially once the bars reopen!

[ChouDoufu]

open brokerage account.

buy individual stocks, buy etf's.

ask broker about ipo.

[BeltAndRoad]

Time to start buying energies, Oil-US Crude, Heating Oil and Natural Gas.  

[AlexRich]

26 minutes ago, BeltAndRoad said:

Time to start buying energies, Oil-US Crude, Heating Oil and Natural Gas.  

Or cruise ship shares?

[torturedsole]

4 hours ago, DaRoadrunner said:

I would suggest that whilst your rubber glove maker may have lots of orders now, this is temporary and will decline after Covid is gone.

Don't invest in anything.  The second wave is going hit on 3 October and we're going to have another nice long holiday but not good for investment.  

[BeltAndRoad]

32 minutes ago, AlexRich said:

Or cruise ship shares?

Maybe.  In 12 months from now.

[Vigilante]

Shares and stock-markets are a pyramid-like scam

They always were...the trick is to know when to get in (early in the upward curve) and out before the scam implodes (lack of new entrants).

 

...but wait...it gets worse

Companies, not satisfied with flogging shares, are also issuing 'bonds'

..because they need to 'expand' hahahaha

As if they couldn't use their own cash to do it , like the good old days.

..but they have used their cash to play the markets

The end result, most companies are a house of cards bound to collapse in the slightest upheaval

..and a cat. 20 hurricane is upon us.

 

We are at the very beginning of the financial storm

 

 

[oceanbluejewell]

You will need open a brokerage account in Thailand. I use BLS as I Bank with Bangkok Bank. 

Visit your branch and ask see a manager for referral to the brokerage you wish use. They will do letter and application and forward (takes about 3 business days) 

Make sure provide a Line id and email address as the representatives don't speak great English. They will contact you to vet you on your experience and determine how much margin they will give you on the "collateral investment account". 

Once the account is open you must fund it - this may require you change you current savings To a version of the banks iBanking. Again limits of transfer are small so a visit to branch again to apply higher limits maybe required. (Increased mine to 100,000 / day)

Once the account is funded with cash you can research equities with a variety of tools. (Streaming - trade & research tool, iAlgo - complicated conditional trades)

I would suggest also registering with the SET so you can access company financial information and details on what kind of trading is allowed.  

I mostly use the "streaming app" and iAlgo for more complicated trades. 

Equity stocks are either full rights BBL-F or restricted NVDR meaning non voting dividend receiving symbol BBL-R

Full shares are or have no liquidity. The NVDR shares were established to encourage foreign investment and have more liquidity. 

Tutorials are in Thai for all applications so a helpful thai friend if you can't understand. 

The SET has good English language tutorials for about 60% of contents and financials. Are in English or Thai. 

Dividends are never paid directly in to the collateral account. They are taxed and paid to your bank account. Only one company currently offers dividend reinvestment. You should get a tax number (TIN). You can then recover some if not all the tax on dividends and declare the income in home country. 

Dividends are taxes @ 10%

Interest @ 15%

Capital gains are exempt. 

Your plan and risk profile will determine your appetite for investments. Proceed with caution. 

I own  bank, 2 telco's, 1 high tech and 1 hospital chain.

Best of luck. 

I am not an investment professional; consult your professional investment advisor and/or legal counsel and/or professional accountant before making any investment decision. While all reasonable effort is made to ensure the accuracy of information and data contained herein, accuracy cannot be guaranteed. Past performance is not a good predictor of future performance. Results are not guaranteed and I assume no liability whatsoever for any material losses that may occur. No compensation for suggesting particular securities or financial advisors is solicited or accepted. The information in this document is not intended to be educational, nor does it constitute financial advice nor is it a suggestion or recommendation. Investing is risky and may result in substantial losses.~ oceanbluejewell

[Oxx]

On 4/26/2020 at 7:13 PM, oceanbluejewell said:

You can then recover some if not all the tax on dividends and declare the income in home country. 

 

If you are a foreigner tax resident in Thailand, you do not normally need to declare income to your home country.  The vast majority of countries taxes individuals based upon residence, not citizenship.  America, Eritrea, Myanmar and North Korea are the obvious exceptions.

[chingmai331]

Thanks all.  Case closed.

[dlclark97]

I have looked at SET and a few Thai stocks and what I find is NO historical data beyond about 1 month.  I have chosen to stay away.  If you are from the USA have a look at Vanguard or Fidelity.  At this time, ETF's and index funds give you a lot of diversification.  Unless you are an experienced stock researcher and it does not sound like you are I would stay away from individual stocks unless you have the resources to go into the big and stable names that can weather the current and possible future storms.  Fidelity has a lot of research and historical data that cold help and I am sure Vanguard has the same.  Good luck.

[Oxx]

42 minutes ago, dlclark97 said:

I have looked at SET and a few Thai stocks and what I find is NO historical data beyond about 1 month

You're clearly not looking very hard.  Google has 5 years' worth of prices, e.g.

 

https://www.google.com/search?q=set+bbl

 

The SET has 6 months of trade history

 

https://www.set.or.th/set/historicaltrading.do?symbol=BBL&page=1&language=en&country=US&type=trading

[oceanbluejewell]

The SET will give 4 years financials + current year for example SCC : THE SIAM CEMENT PUBLIC COMPANY LIMITED

 

As was mentioned Google finance and yahoo will have more data but it is often incorrect. Best place to verify is the INVESTOR RELATIONS website for each company. SCC Investor Relations - most companies will archive 10 year if they have been in operation that long and other like SCC.BK have data going back to 2000.

A email to investor_relations will get you all you want.

 

I agree with previous comments about the level of knowledge required to research individual stocks.

If you open a brokerage account they will provide you with many tools for research often referred to as "PRE-TRADE" and you can look at fundimental data and technical data until your blue in the face.

 

The SET wants foreign investment and has published a handbook - attached. (Caution - some stocks have very little or no  liquidity and depending on type you buy "F - foreign" or "R -Non-Voting depository receipt (NVDR)". Thus need to check daily volumes.

 

Again unless you have vast experience in foreign emerging markets, stay with what you know.

 

Most of the buying in last month has been institutional and local individuals - foreign investors are running for the hills. See attached image.

 

I am not an investment professional; consult your professional investment advisor and/or legal counsel and/or professional accountant before making any investment decision. While all reasonable effort is made to ensure the accuracy of information and data contained herein, accuracy cannot be guaranteed. Past performance is not a good predictor of future performance. Results are not guaranteed and I assume no liability whatsoever for any material losses that may occur. No compensation for suggesting particular securities or financial advisors is solicited or accepted. The information in this document is not intended to be educational, nor does it constitute financial advice nor is it a suggestion or recommendation. Investing is risky and may result in substantial losses.~ oceanbluejewell

 

 

SET_Foreign_Handbook_2019.pdf

[khunPer]

On 4/25/2020 at 4:18 PM, chingmai331 said:

If you know how to invest in the SET, plz let me know.

Some banks offers online trading platform. I use SCB, so that's the one I can inform about, but there might others equally good, or even better.

 

To use SCB you need to open a savings account with an ATM card, that is the dedicated bank account to your trading platform.

 

You need 30,000 baht minimum for opening a trading account.

 

After opening you can register online on SCB-online, just click on "Open New Account" next to the log-in. Follow the screen information, and print out the documents, which you bring to you your the SCB branch, where you have your account; they will send it all for you to the SCB Securities branch in Bangkok. Within about a week you'll be up running with online trading

 

When buying stocks on SET you should opt for buying stocks available as NVDR – that will be default marked in you online platform – which means that you as foreigner have no voting right, but will receive dividends and everything else like for example subscription rights for new stocks.

 

If you wish to buy stocks in a company without the NVDR option, you need to look for stocks with an "...-F" at the end in the code, for example "JASIF-F". That means it's in a lot of stocks available for foreign ownership, but it's traded by itself. The trading price can therefore be slightly different from the normal SET-price, as it's depending of, if other foreign owners wish to sell, so trading numbers might be limited. You can however buy without the "...-F"-extension, but you will not be eligible for dividend, however you can get the shares transferred as "-F", but they will then also be transferred in the "-F"-quoted price and traded in that lot; some experience a drop in value.

 

You can move money instantly from you bank account into the trading platform with a mouse-click; you can also move money out, from trading platform to your bank account with a mouse click, but transfer that way takes around 3 bank days. Any dividends are paid straight into your normal savings ank account.

 

You will have a so-called "credit limit" in you trading account, that's the amount you can trade for in one day. It's possible to get it changed. I've got an english speaking personal advisor assigned by SCB Securities, whom I can E-mail to or call, for example for changing the "credit limit".

 

About tax. 
There is a 10 percent withholding tax on dividend pay outs. You don't need to do anymore tax-wise, if you accept the 10 percent tax. Capital gains from SET traded stocks are tax free, and loss cannot be deducted in tax; so you don't need to bother about Thai income tax when trading on SET. Any interest from money in your bank account, or cash in your tranding account, will be withholding taxed at present rate; the trading platform cash-account paid 1 percent pro annum minus 15 percent withholding tax, just like fixed term bank accounts, but lately the cash has not earned interest.

 

I've found it fairly easy to use SCB-online, but little more complicated – or just different – from my Danish bank's trading platform. On SET you always buy/sell in lots of 100s of a stock – i.e. 100, 200, 500, 900, 1500, etc. – and you shall always place a quote in the line. There is a lunch break, so that might be why suddenly noting happens online during midday. 

 

Depending of what portfolio you are looking for, I found based on the Thai stocks I've been investing in that SET lives a bit of it's own life, not strictly following the World market, or the Asian market, but in major situations – like during a pandemi – a downturn is a downturn. However local knowledge – or just "nose" – might see potential in some branches and stocks even during a crisis. Before the pandemi my 3 full trading years' experience was – and mind you, that's based on the stocks I had chosen for my portfolio, so not SET in general, and it could be a (very) different experience for others – my experience was an average of 3 percent cash annual dividend after tax of my total invested capital (without gain/loss), and an average of 7 percent annual capital gain. 

????

[PMZ]

I have used these guys in Thailand for about 12 years. Cheap and easy.

https://www.maybank-ke.co.th/en/

[Iron Tongue]

I'd suggest you use this lock-down time to look at US and European companies to invest right now.  Almost all are down right now and will continue to grow after this mess is finally over.   

 

Look how stocks rebounded after the 2008 crash and fundamentals are better today than back then.

[oceanbluejewell]

12 hours ago, khunPer said:

Some banks offers online trading platform. I use SCB, so that's the one I can inform about, but there might others equally good, or even better.

 

To use SCB you need to open a savings account with an ATM card, that is the dedicated bank account to your trading platform.

 

You need 30,000 baht minimum for opening a trading account.

 

After opening you can register online on SCB-online, just click on "Open New Account" next to the log-in. Follow the screen information, and print out the documents, which you bring to you your the SCB branch, where you have your account; they will send it all for you to the SCB Securities branch in Bangkok. Within about a week you'll be up running with online trading

 

When buying stocks on SET you should opt for buying stocks available as NVDR – that will be default marked in you online platform – which means that you as foreigner have no voting right, but will receive dividends and everything else like for example subscription rights for new stocks.

 

If you wish to buy stocks in a company without the NVDR option, you need to look for stocks with an "...-F" at the end in the code, for example "JASIF-F". That means it's in a lot of stocks available for foreign ownership, but it's traded by itself. The trading price can therefore be slightly different from the normal SET-price, as it's depending of, if other foreign owners wish to sell, so trading numbers might be limited. You can however buy without the "...-F"-extension, but you will not be eligible for dividend, however you can get the shares transferred as "-F", but they will then also be transferred in the "-F"-quoted price and traded in that lot; some experience a drop in value.

 

You can move money instantly from you bank account into the trading platform with a mouse-click; you can also move money out, from trading platform to your bank account with a mouse click, but transfer that way takes around 3 bank days. Any dividends are paid straight into your normal savings ank account.

 

You will have a so-called "credit limit" in you trading account, that's the amount you can trade for in one day. It's possible to get it changed. I've got an english speaking personal advisor assigned by SCB Securities, whom I can E-mail to or call, for example for changing the "credit limit".

 

About tax. 
There is a 10 percent withholding tax on dividend pay outs. You don't need to do anymore tax-wise, if you accept the 10 percent tax. Capital gains from SET traded stocks are tax free, and loss cannot be deducted in tax; so you don't need to bother about Thai income tax when trading on SET. Any interest from money in your bank account, or cash in your tranding account, will be withholding taxed at present rate; the trading platform cash-account paid 1 percent pro annum minus 15 percent withholding tax, just like fixed term bank accounts, but lately the cash has not earned interest.

 

I've found it fairly easy to use SCB-online, but little more complicated – or just different – from my Danish bank's trading platform. On SET you always buy/sell in lots of 100s of a stock – i.e. 100, 200, 500, 900, 1500, etc. – and you shall always place a quote in the line. There is a lunch break, so that might be why suddenly noting happens online during midday. 

 

Depending of what portfolio you are looking for, I found based on the Thai stocks I've been investing in that SET lives a bit of it's own life, not strictly following the World market, or the Asian market, but in major situations – like during a pandemi – a downturn is a downturn. However local knowledge – or just "nose" – might see potential in some branches and stocks even during a crisis. Before the pandemi my 3 full trading years' experience was – and mind you, that's based on the stocks I had chosen for my portfolio, so not SET in general, and it could be a (very) different experience for others – my experience was an average of 3 percent cash annual dividend after tax of my total invested capital (without gain/loss), and an average of 7 percent annual capital gain. 

????

Great Post thank you

There are 39 members of SET and 32 offer online trading. Someone better than others. 

https://www.set.or.th/set/memberlist.do?language=en&country=US

 

My portfolio generates over 3% after deduction for 10% withholding tax. I declare all income in home country and recover the withholding tax paid as a credit. 

[JAS21]

On 4/28/2020 at 6:55 PM, Oxx said:

You're clearly not looking very hard.  Google has 5 years' worth of prices, e.g.

 

https://www.google.com/search?q=set+bbl

 

The SET has 6 months of trade history

 

https://www.set.or.th/set/historicaltrading.do?symbol=BBL&page=1&language=en&country=US&type=trading

Maybank, who MrsJ uses, appears to have 12 months...here is just an example and it is far far easier for your wife to open an account, and you use it, that it is for a foreigner to open one. And the foreigner will pay tax. It is very easy to pull up the last 12 months prices of any SET stock.