STOCK MARKET / BROKERAGE

SCIB unit aims to be in top ten in three years

NUNTAWUN POLKUAMDEE

SCIB Securities hopes to break into the top-10 among local brokers within three years, driven by growth in online trading. Parent Siam City Bank opened the business in 2003 after taking over a licence previously held by Yuanta Securities.

At the end of last year, the firm had a market share of 0.8% of trade on the Stock Exchange of Thailand, but expects this to nearly double to 1.5% by the end of 2007.

Sathit Wannasilpin, a deputy managing director, said staff were expected to grow to 120 to 150 from 90 by the end of the year to support business expansion.

Institutional investors, who now account for 10% of clients, are expected to expand to 15% this year, he said.

At the same time, the company will leverage its relationship with Siam City Bank to expand its retail brokerage, with a focus on large bank depositors.

On the investment banking side, SCIBSEC is advising three to four initial public offerings worth 10 billion baht, as well as two or three additional advisory deals and three merger and acquisition deals.

''We have paid-up capital of two billion baht, which is plenty to support our expansion into other businesses such as investment banking,'' Mr Sathit said.

''SCIBSEC is still a relatively new broker. We plan to focus on online trading, which represents the future trend for the market, particularly among younger investors.''

SCIBSEC expects to complete its online platform by June, he added.

Mr Sathit acknowledged that the broker's operating cost, at 0.22% of each trade, was relatively high compared with the industry's average of 0.18%.

''I believe that once we can boost our market share to 1.5%, we will be able to show an operating profit,'' he said.

The broker is turning a net profit, thanks to gains from proprietary investments. Cash on hand totals one billion baht, primarily invested in the bond market.

Margin lending assets total 400 million baht, expected to rise to one billion. SCIBSEC also plans new derivative products and securities borrowing and lending services within the next few months to further strengthen its product line.''Our goal is to become a full-service broker, breaking into the top ten within three years,'' Mr Sathit said.

Sukit Udomsirikul, the SCIBSEC research manager, said the SET index this year was expected to move in a broad range of 580 to 760 points, with average daily trade of just 13 billion baht per day.

Bangkok Post
Friday February 02, 2007