TFEX sees slowdown in hedging need

       The Thailand Futures Exchange (TFEX)expects trading to slow as the stock market rally reduces the need for hedging.
       Trading on the bourse may drop to about 10,000 contracts a day in the second half from 10,678 in the first six months,said Kesara Manchusree, the TFEX managing director. Average daily volume jumped 63% in the first half, boosted by record trading of 16,542 contracts a day in June, she said.
       "Individual investors prefer to directly invest in equity securities now because they have more confidence in the stock market," Ms Kesara said."The demand for hedging instruments surged in the second quarter because they were unsure the rally would be sustainable and the market was very volatile."
       The SET index jumped 48% so far this year, set for its best performance in six years, on expectations that an economic rebound will boost corporate earnings.Thailand's economy may expand in the fourth quarter after contracting the past four quarters, as the government spends more and exports recover, Finance Minister Korn Chatikavanich said this week.
       Futures trading has averaged 10,690 contracts a day so far in September,down from 12,205 in August and 15,001 in July, according to TFEX data.
       The number of futures trading accounts has risen to 25,000 from 15,894 at the end of last year. About 55% of the accounts are individual investors, she said.
       Kim Eng Securities, the country's biggest stock brokerage, said recently that derivative trading would be the main area of growth for most local securities companies and it added more analysts and traders to cope with the increased business volume.