However, the outlook for these brokers in 2007 is somewhat clouded following the Bank of Thailand's 30-per cent reserve withholding imposed in late 2006, which sent the market into a nosedive.

Although foreign inflow into the stock market was exempted from the central bank's stern measure, securities analysts estimate that foreign investors will stay away from the Thai stock market for at least one quarter.

SCB Securities, Phatra Securities, Credit Suisse Securities (Thailand), UBS Securities (Thailand), CLSA Securities (Thailand), JP Morgan Securities (Thailand) and TMB Macquarie Securities (Thailand) all saw their market shares go up in 2006, according to Stock Exchange of Thailand (SET) data.

SCB Securities' market share jumped from 5.15 per cent in 2005 to 6.40 per cent as of December 25, 2006. It surpassed Asia Plus Securities (ASP) as the country's second-largest broker in terms of stock trading volume.

Shin Corp's Bt73.3-billion deal in January 2006 can also be ascribed to SCB Securities' higher market share. The

 brokerage at that time was one among six involved in buying and selling shares between the family of ousted prime minister Thaksin Shinawatra and two units of Temasek Holdings of Singapore.

The country's biggest-ever acquisition also gave a big boost to the market share of other brokers who were involved in the deal's transactions, with the exception of Trinity Securities. These were KGI Securities (Thailand), Thanachart Securities, Phatra Securities and UBS Securities (Thailand).

Phatra Securities saw its market share shoot up from 4.97 per cent to 5.80 per cent as of December 25, 2006.

The market share of Credit Suisse Securities (Thailand) jumped from 4.03 per cent in 2005 to 5.14 per cent, while UBS Securities surged from 4 per cent to 4.65 per cent, KGI Securities from 3.72 per cent to 3.95 per cent and Thanachart Securities from Bt2.61 per cent to 3.30 per cent.

JP Morgan Securities' market share increased from 2.34 per cent in 2005 to 2.80 per cent while TMB Macquarie Securities climbed from 2.17 per cent to 2.72 per cent.

Kasikorn Securities' market share jumped from 0.12 per cent in 2005 to 0.51 per cent. ACL Securities was another broker that showed good performance as its market share soared from 1.42 per cent in 2005 to 2.18 per cent.

 Even though Kim Eng Securities has maintained its top position in the brokering business for five years in a row, its market share shrunk from 10.20 per cent in 2005 to 8.57 per cent as of December 25, 2006.

Asia Plus Securities lost its second slot, falling to third with a 6.19 per cent market share, down from 7.14 per cent.

Seamico Securities was also in the same camp as Kim Eng Securities and Asia Plus Securities. Seamico Securities' market share slumped from 4.28 per cent in 2005 to 3.75 per cent.

DBS Vickers Securities' market share also fell from 2.93 per cent to 2.79 per cent.

  Kim Eng Securities relies on a one-stop service

CEO Montree Sornpaisarn recently said that Kim Eng Securities would adopt a one-stop financial service next year as part of its strategy to maintain its top position in the brokerage business for the sixth year in a row.

"We will focus on maintaining our research quality and providing suggestions to customers to allow them to make transactions with the right timing. In addition, we will offer a portfolio suggestion service for our clients," he said.

The portfolio would focus on risk diversification and acceptable returns.

Another two key methods in keeping the broker's leadership are maintaining marketing officers and accessing bank depositors.

Bualuang Securities: synergy with Bangkok Bank is a key Bualung Securities' president Yarnsak Manomaiphiboon will join forces with Bangkok Bank next year through three strategies in an effort to penetrate into the bank depositor group.

Firstly, it will open co-branches with Bangkok Bank.

Secondly, Bangkok Bank's staff will suggest customers to the broker.

Last but not least, the broker's online stock trading will be available at Bangkok Bank's branches.

After Chong Toh, former Bualuang Securities president, changed position to become Bangkok Bank's senior vice president for International Banking Group in 2005, the synergy between Bualuang Securities and Bangkok Bank has become apparent.

Toh now takes power as Bualuang Securities' chairman of the executive committee.

The closer cooperation between Bualuang Securities and its parent has boosted the brokerage's market share.

Yarnsak added that his brokerage house planned to raise the ratio of institutional investors from 30 per cent in 2006 to 35 per cent.

For derivatives trading, he said that Bualuang Securities in 2007 would maintain its market share at 10 per cent and the number of accounts would double from 300 to 600.

Oranan Paweewun

The Nation