The New Free-Float Measure Expects to Take Effect in July! BBL-SCB as Most Beneficiaries

The Stock Exchange of Thailand (SET) is expecting to announce the implementation for the new free-float measure within a week or two, while the effective date is expected to be July 1, 2021, onwards.

 

Asia Plus Securities (ASPS) stated that the hearing for the new free-float measure in the Stock Exchange of Thailand (SET) has been completed since last Friday, and the official announcement for the new free-float measure should be within this week or by next week, while the effective date would be the first trading day in July.

 

The listing and rebalancing of SET50 and SET100 members will be calculated from the free float of listed companies ending May 2021.

 

ASPS expected listed companies with an average free float of 47% to benefit the most from this new measure. Stocks benefiting from the weight increase are BBL, KBANK, SCB, SCC, BDMS, CPALL and INTUCH. Meanwhile, AOT, DELTA, OR, GULF and ADVANC would be at a disadvantage from the weight reduction.

 

The SET50 additions are expected to include BANPU, KKP, KCE, STA and IRPC due to their large market capitalization and high free float. Meanwhile, SET50 deletions are expected to include VGI, TOA, GLOBAL, DTAC and COM7.

 

CBS-CIMB Securities stated that the measure is in line with the global standard where low free float securities will result in a weight reduction and the position in SET50 and SET100. The effect from a weight reduction and positioning would be the investment of institutional investors that would pick individual stocks that benefited the most from the new measure such as the banking sector. On the other hand, the electronic sector would see a weight reduction the most.

 

Analysts and fund companies agreed that the new measure will increase stability in SET Index, resulting in no wild speculation as in DELTA a few months ago.