SET to introduce energy-based ETFs

July 24th, 2008 - 11:20 am ICT by Amrit Rashmisrisethi  

The Stock Exchange of Thailand (SET) is about to introduce the MTrack Energy Exchange-Traded Fund (ETF), the first equity ETF based on the SET Energy and Utility Sector Index. The ETF is scheduled for Initial Public Offering (IPO) from July 21st to 28th and is expected to be listed on August 7th.

The SET President, Ms. Patareeya Benjapolchai, says TMB Asset Management Company Limited (TMBAM) will manage MTrack Energy ETF. She says the ETF provides investors with increased choice and another risk management instrument. Since the ETF is underpinned by diverse stocks in a sector with large market capitalization and high liquidity, it will attract investors wishing to avoid the risks entailed in individual stock investment. Ms. Patareeya says it will also increase trading volume.

The Chief Executive Officer of TMBAM, Ms. Jotika Savanananda, says MTrack Energy ETF’s IPO price, or par value, will be calculated by dividing the SET Energy and Utility Sector Index by 4,000, and should be around four baht. She says the timing is good and the IPO price is relatively cheap, as the sector’s index dividend yield is 4.5 percent and its price/earnings (P/E) ratio is less than 10.

Source : National News Bureau, Public Relations Department of Thailand

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