Thailand's volatile equity market has revived trading in derivative warrants (DW), with turnover climbing to 3-4% of total market trading value, according to KGI Securities (Thailand).Jenvit Chinkulkitniwat, managing director of equity derivatives at KGI, said the brokerage plans to issue more than 1,100 DW series this year, of which 370 series have already been launched, marking the highest level in the company's history.
KGI aims to expand its investor base and support a broader range of trading strategies, he said.
DWs are leveraged investment instruments that allow investors to profit from price movements in underlying assets such as stocks or indices using relatively small capital, although they carry higher risks due to volatility and expiry constraints.
Thailand's benchmark stock market index started the year strongly, rising towards 1,500 points and generating returns of 15-20%.
Sentiment later weakened as geopolitical tensions in the Middle East and higher oil prices complicated expectations of US Federal Reserve rate cuts, keeping Thai equities trapped near current levels.
