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Anyone trading in theThai Stock Market


rookie

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I hadn't noted any posts where anyone was dabbling in the "SET"...the Thai Stock Market.

Like markets worldwide, many stocks on the SET are depressed...and volatile.

 

I've considered opening an acc't with a large Thai stock broker, upon learning that there are no capital gains taxes (e.g. USA)and any income [or trading] is _not_ reported to your home country. It is the sole responsibility of the individual whether to disclose any taxable income to their home country. They use a system called 'NVDR' for foreigners which eliminates voting-rights for share holders but also serves to make their trading anonymous. Hmmm!

 

Are any of the board members currently trading on the SET? What has been your experiences or successes?

 

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The SET is a small market, half the market capitalization is one company and its subsidiaries. It is also well known for being highly manipulated by groups of people who drive up prices on certain stocks using somewhat less then legal means and selling off to unwary buyers who think a rally in that stock in happening. Not a place for an uniformed outsider, unless you just enjoy gambling.

TH

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i am not sure its a great market for trading, thats what many locals do so the trades can get a bit crowded and so hard to make money. i do invest in thai stocks mainly for the very attractive dividend yield and so i tend to buy and hold. it is a well regulated market with a number of high quality companies but there is also plenty of rubbish so you need to do the work, but it can be very rewarding. right now you can pick up some real bargains, there are a number of strong well financed companies offering dividend yields (after the 10% tax that is deducted before payment) of 8%+ but again do the work and avoid local tipsters and hot stocks

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BTW the NVDRs you mention were introduced a couple of years ago to help get around the foreign ownership limits that there are on all thai stocks. you do not need to use these if 1) the stock has not reached its foreign ownership limit in which case you buy the shares in the normal way and get your broker to register them as foreign owned and they have all the rights of local stock incl the votes or 2)you get your broker to act on the basis you are a bona fide thai resident in which case you can buy stocks on the local register even if you are foreigner (one of those litte quirks). however there are a number of advantages to owning the stock on the foreign register (exchange controls etc)which mean that is usualy the best way to go. if you do have to buy NVDRs there is a system which allows you to convert into foreign shares when/if they become available

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  • 8 months later...
  • 3 weeks later...

Wordchild...

Sorry for delayed reply; haven't been on any boards for a while...

Yep, got into the SET in late Feb/early March. Profits now up slightly over 1-mil Bt. Was initially impatient. Bought mainly SET-50 stocks (big companies) but sold if they dropped a little. I was a 'rookie' investor. Had I held them, most are now up 100% from when I first entered the market. Now have some nice long-term stocks and some for quicker profits. Love the idea of no capital gains tax and minimal fees. Plus, the dividends are fairly high on some major companies. Yet, caution is the byword as the market is definitely manipulated by the big players!

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