BLS seeks top-3 status: Broker well prepared for liberalisation [Bangkok Post, Thailand]

July 22--Bualuang Securities aims to increase its market share to 5% within the end of the year, and break into the top-three ranking within the next three years.

The broker currently ranks fourth in the league tables with a market share of 4.8% of transaction volume on the Stock Exchange of Thailand.

BLS president Pichet Sithi-Amnuai said the company was well prepared for the liberalisation of the securities sector over the next several years.

Business strategy would continue to be to positioning the firm as a premium broker serving retail investors, local institutions and foreign investors.

BLS is restructuring its operations to help improve efficiency. Bannarong Pichyakorn has been named managing director for sales and trading business, with Vararatana Jutimitta named managing director for merchant banking.

It has also formed a product development team to help serve clients and advise on asset allocation, investment strategy and arbitrage opportunities.

Pichet: Potential in private equity

Mr Vararatana said BLS has enjoyed a run of success in its investment banking operations over the past several years, with advisory mandates for Indorama Ventures and Bangkok Life Assurance, two of the largest listings on the SET in recent years.

He said the domestic IPO market would be weak over the next several months, due to sluggish market sentiment and political uncertainties.

But problems in the global economy would lead to growing opportunities for cash-rich Thai firms to acquire overseas assets and expand outside of Thailand, Mr Vararatana said.

Mr Bannarong said for the brokerage business, BLS would focus more on retail clients, a group expected to be less affected by the liberalisation of commission fees over the next several years.

The company would use its IT trading platform to target new investors among working professionals of large companies.

Vararatana:MDfor merchant banking

Mr Bannarong projected that the SET, up nearly 13% since the beginning of the year, would enter a bearish cycle, with the main index possibly sliding to under 800 points on profit-taking and worries about the European debt crisis.

But the index, which closed yesterday at 830.93 points, could reach 870 by the end of the year, he said.

Mr Pichet said BLS will expand to the private equity market next year to help boost its income stream. The company plans to focus 60% of its investments in Thailand and the rest overseas.

Each investment deal would be from $5 million to $50 million, with a 3-5 year investment horizon.

Mr Pichet said BLS also conducts arbitrage trading through the Thailand Futures Exchange, but takes positions for hedging and risk management purposes rather than for trading in itself. BLS has no plans to engage in proprietary trading, he added.

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