Big uptick in depositary receipt trade

Trading of depositary receipts (DRs) has surged 125% year-on-year, reflecting a shift in investor sentiment towards international exposure amid heightened volatility in the Thai stock market triggered by both local and global headwinds, says the Stock Exchange of Thailand (SET).

- NUNTAWUN POLKUAMDEE

SET president Asadej Kongsiri said DRs have emerged as a fast-growing alternative for investors seeking global diversification as they navigate market uncertainty.

The market capitalisation of DRs is around 34 billion baht, marking a 15% increase from the previous year. The average daily trading value jumped to 550 million baht, more than double a year ago.

There are 123 DRs listed on the Thai exchange, representing a broad array of single stocks and exchange-traded funds (ETFs) from Asia, Europe and the US.

These instruments allow Thai retail investors to diversify overseas without the need for foreign brokerage accounts or currency conversion, as all trades are conducted in baht, he said.