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Investors flock to HASTC to seek fatter profit
While many listing companies are trying to leave Hanoi for the HCM City Stock Exchange (HOSE), many investors have left HCM City to make transactions at the Hanoi Securities Trading Centre (HASTC).
With the allowed wider trading band (10% vs 5%), investors at HASTC can make twice as much profit compared to HOSE
With the allowed wider trading band (10% vs 5%), investors at HASTC can make twice as much profit compared to HOSE. This explains why investors are flocking to HASTC, though HOSE is still considered the main bourse of Vietnam, and sets higher requirements on listing companies, while HASTC is considered the place for less profitable companies.
Mrs Vy, an investor who has an account at EAB’s Securities Company, said that he could pocket VND60mil after two months of making transactions at HASTC by injecting money in shares of Song Da groups.
According to Mr Vinh, another investor, previously, short-term investors only sold share shares when they could get the profit of 15-20%. However, at this moment, as the market always fluctuates, they have to sell when the price increases can bring them the modest profit of 5-10%. As a result, the investors have to raise the frequency of investment deals, and the wide trading band of +/- 10% proves to be suitable for them, as it can ensure acceptable profit.
It is noteworthy that most of the investors who have left HCM City trading floors to go to Hanoi are small investors. The investors say that they want to make bigger profit at HASTC than “collecting small change” at HOSE.
According to a director of an investment fund in HCM City, investors do not care about the trading floors, the only thing they care about is where they can earn the biggest profit. In the US, many big companies still list their shares on small bourses. The director said that the State Securities Commission should not set requirements for listing companies on different bourses, because this does not make sense.
Meanwhile, Huy Nam, a securities expert, said that HASTC would be more suitable for speculators, explaining why many investors preferred HASTC than HOSE.
In fact, the prices of share items listed at HASTC are lower than that at HOSE (the HASTC Index was 374.96 points on October 29, while the VN Index of HOSE was 1,064.2 points on the same day). “Lower prices and wider trading band both will allow bigger profit,” said Mr Nam.
In the eyes of investors, HASTC, as a newer market than HOSE, proves to be more attractive because it promises more opportunities.
While the VN Index hovers around 900 and 1,000 mark threshold, the HASTC index is in the rapid development period.
VNN
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