Siam City predicts bullish second half

SOMRUEDI BANCHONGDUANG

Siam City Securities sees strong prospects for business growth this year despite the bearish mood of the equity markets.

Satit Wannasilpin, the managing director for brokerage business for Siam City Securities, said the broker aimed for a net profit of 85 million baht this year, up from profits of 35 million last year. First half profits to date were 50 million baht.

Siam City Securities, a subsidiary of Siam City Bank, currently derives 55% of total revenue from brokerage revenues, with another 10% from investment banking services and the remainder from cash management.

Mr Satit said the broker had doubled its market share in the first half to 1.2% to 1.3% at the end of June, and expected to reach 1.5% by the end of the year.

But trading volume on the SET was expected to fall to just 15 billion baht per day in the second half from 20 billion in the first half, affecting brokerage commissions. Siam City Securities currently has a year-end target for the SET index of 830 points, down from earlier forecasts of 915.Mr Satit said that despite the bear market, the broker was continuing with its plans to open six new branches in the second half in addition to 14 now. By the end of 2009, Siam City Securities aims to have 40 branches nationwide.

The broker's margin loan portfolio was also projected to rise to 1.5 billion baht by the end of the year from one billion now.

Siam City Securities yesterday signed an agreement with the Stock Exchange of Thailand and the Market for Alternative Investment to collaborate on providing research coverage of listed companies.