A (sort of) New SET calculation

After years of sitting on their butts the exalted individuals that are running the SET have instead of deciding to fix the free float requirements of joining the SET50 (hello DELTA), instead they are going to launch a brand spanking index that will take into account the free float of listed co’s, those clever clever buggers *crickets*

Every broker in Thailand has gone ahead and provided the full details which are as follows:

  • The SET will launch two new indices, SET50FF and SET100FF, on Jan. 1, 2024. The Stock Exchange of Thailand (SET) plans to introduce a SET50 Free Float
  • Adjusted Market Capitalization Weighted Index (SET50FF) and a SET100 Free Float Adjusted Market Capitalization Weighted Index (SET100FF), effective next year.
  • These two new indices will use the same selection criteria as the current SET50 and SET100 indices However, the calculation of the weights of the securities will be revised from “full market capitalization” to “free float adjusted market capitalization”. With the new “free float adjusted market capitalization” method, the weighting of each stock in the SET50 and SET100 indices will be calculated based on both market capitalization and free float, instead of only market capitalization under the current “full market capitalization” formula. The SET will begin publishing the new indices on Jan. 1, 2024.

Note: the graphs below are based on a data from a month ago – and I don’t remember which broker I copied this from.

So, it’s rather obvious who the winners and losers are of this, but are funds going to follow this, or the original SET calculation? Thus far, it doesn’t appear to be the case, perhaps this is why DELTA continues to hold strong.

The management of the SET is a perfect example of what happens when idiots do not fix a straightforward problem, and instead add another unnecessary level of work.

Changes to the MSCI and FTSE Indices

  • MSCI rebalance effective at the close of Aug 31.
  • MSCI Global Standard
    • Add: TTB
    • Delete: CBG, SAWAD
  • MSCI Global Small Cap
    • Add: CBG, COM7, ITC, PSG, SAWAD
    • Delete: PTL, S, SINGER
  • FTSE Changes are on 15th September.
  • FTSE Large Cap
    • In: TRUE
    • Out: GPSC, AWC
  • FTSE Mid Cap
    • In: GPSC, AWC
    • Out: STGT, TRUE
  • FTSE Small Cap
    • In: STGT
    • Out: VIBHA

Retail folklore

I love retail investing folklore, actually that’s a disservice to the retail investors, local insti’s have the same thinking. I’ve heard so many, even today from my team about the newest ideas/thoughts/rumours that I just shake my head…On a side note two of my personal favourites that I unabashedly used and followed was Turnaround Tuesdays and Magic Friday’s, which I happily tracked, followed, proved and traded with SET Futures from when they launched until Lehman blew up.

Now watch me, actually give credit to the SET for putting this out. They’ve gone ahead and presented analysis dismissing one folklore that program and high frequency trading is the cause of the market decline.

SET Research

Note it’s only available in Thai, but it does prove it’s not because the program & HF trading that the market is so $hit, if you want to know the real reason it’s because of Prayuth

  1. Khun Pon, welcome to the world? Did you expect anything else out of the land of smiles? They are (expression omitted), on all levels. They may have studied in Harvard, but they behave Thai. On the Thai stock market, you may get lucky with speculation as everywhere else. Long term investing will be disappointing for the next 10 years, but at least dividends will come in. And: Prayuth has found a worthy successor. Enjoy your life!

    • Other than the US capital markets, which markets have performed well in USD terms over 40-50 years? Not many. This comment applies practically everywhere.

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