The Stock Exchange of Thailand (SET) plans to adopt free-float adjusted market capitalisation in the calculation methodology for the SET50, SET100 and SETHD indices, effective from July as it strives to prevent speculation on low free-float stocks.
The new methodology is scheduled to be applied to the three main indices first before expansion to other indices next year.
The replacement of full market capitalisation with the free-float adjusted market capitalisation method in calculating the indices should better reflect market conditions in terms of liquidity, and aims to prevent speculation on low free-float stocks as occurred with Delta Electronics (DELTA) last year, causing the SET index to fluctuate widely.
Paradorn Tiaranapramot, assistant vice-president at Asia Plus Securities (ASPS), said stocks with a high portion of free-float shares will see their weight…
