The SET Index is a composite stock market index calculated by the Stock Exchange of Thailand (SET) that represents the overall performance of the Thai stock market. It is made up of a set of stocks that are selected based on their market capitalization and liquidity. The index is used as a benchmark for investment decisions and performance evaluation. Here are some key points about the SET Index:
- Calculation: The SET Index is calculated by adding the market capitalization of all the constituent stocks and dividing it by a weighting factor. The weighting factor ensures that larger companies with a more significant impact on the index have a higher weightage.
- Constituents: The SET Index includes a set number of stocks that meet certain criteria such as market capitalization and liquidity. These stocks are selected by the SET and are subject to periodic review and adjustment.
- Market Representation: The SET Index provides a broad representation of the Thai stock market, including companies from various sectors such as banking, finance, energy, and consumer goods.
- Investor Interest: The SET Index is closely followed by investors both locally and internationally. It is used as a benchmark for passive investment products like exchange-traded funds (ETFs) and as a benchmark for active funds to measure their performance.
- History: The SET Index has a long history, dating back to April 30, 1975, when it was established to provide a benchmark for stock market performance. Over the years, it has witnessed several ups and downs, reflecting the impact of economic cycles, market trends, and external events on the Thai stock market.
The SET Index is a key indicator of the overall health of the Thai stock market and serves as a benchmark for investors and policymakers.
7/30/2024 04:01am
