CNS offers staff joint investment programme

       Capital Nomura Securities launched a new employee joint investment programme for its staff featuring an openended term and no silent period on share sales.
       Takeshi Nishida, the president of Capital Nomura Securities, said employee joint investment programmes (EJIP) were quite popular in Japan as an employee benefit.
       Under an EJIP, staff allocate a set amount from their salaries to a fund to purchase stock in their companies. The employer will contribute a matching amount up to a set limit.
       "Actually, the programme's purpose is to improve staff welfare benefits. But another advantage is that it can also help increase the investor base, market and stock liquidity," Mr Nishida said.
       "Another advantage is that as a regular investment, members benefit from cost averaging."
       CNS staff may allocate from 500 baht up to 10% of their salaries to the EJIP programme, with the company matching contributions. At the end of each year,staff who hold on to their stock will receive a 10% bonus on top of normal company contributions.
       CNS is the third listed company in Thailand to launch an EJIP programme,following CP All and Bangchak Petroleum.
       In contrast to the other two companies,CNS will impose no silent period on staff, who may elect to sell their holdings once each month.
       Mr Nishida said in Japan, an estimated 80% of listed companies offer an EJIP scheme.
       "We plan to offer a consulting service for listed companies to set up EJIP plans as well. Many companies set up EJIP to reward their committed employees before an initial public offering," he said.
       Of CNS's 375 staff,55% have joined the programme to date.
       Nimit Wongjariyakul, chief operating officer, said staff are able to change the investment amount twice or stop autodeductions temporarily if necessary.
       Thanomsak Saharatchai, head of the research division, said the company foresaw a Stock Exchange of Thailand target of 712 points on an assumption of 23.5%EPS growth and a PE ratio of 14 times.However, if the PE ratio reaches 18 times,the SET index might reach 806-807 points.