Thai Banks to Benefit Most from New SET Free Float Adjusted Index

The Stock Exchange of Thailand (SET) has announced that it plans to launch the new indices, namely SET50 Free Float Adjusted Market Capitalization Weighted Index (SET50FF) and SET100 Free Float Adjusted Market Capitalization Weighted Index (SET100FF), in early 2024.

These new indices will be offered as alternatives to the existing SET50 and SET100 Indices. The selection criteria for the new indices will be similar to those of the SET50 and the SET100 Index. However, the constituents’ weight of the new indices will factor in the free float of each listed securities. The new index ground rules will be updated and published on the SET website. SET schedules to launch these two indices from January 1, 2024, onwards.


Based on the closing price on August 7, 2023, Maybank Securities (Thailand) (MST) stated that the new adjustment could weigh down ETRON (-5.48%), ENERG (-3.33%), ICT (-2.22%), while BANK (+6.82%), HELTH (+2.55%) COMM (+1.43%) could be seeing their weight increased.

The impact on the investment flow remains to be seen as MST noted that it would need to see feedback from the funds on this adjustment.


Asia Plus Securities (ASPS) stated that the turnover of SET100 Index could increase from 70.1% this year to 80.2% under the name adjustment. Moreover, the brokerage firm noted that the pressure on low free-float stocks would not be as high as when the regulator was considering making a direct adjustment to the index. Under this new ‘Free Float Adjusted Market Capitalization Weighted Index’, it provides an alternative option for the fund managers to invest in securities that are less fluctuated.