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Unlisted stocks join the party
The informal over-the-counter market has tracked the recovery in the Ho Chi Minh City and Hanoi markets as investors scramble to buy stocks of unlisted banks, property companies, and certain firms planning to list soon.
Loan, an unofficial “broker” in HCMC, told Thanh Nien, “I’m trying to buy 10,000 shares of Hoang Anh Gia Lai Corporation [for a ‘client’]. Its price last month was around VND80,000, but nobody wanted to buy. It has soared to VND100,000 now, but many investors are rushing to get a piece of the action.”
Phu My Fertilizer, Ha Tien Cement No.1, and Hoa Phat Group, which are set to list on the Ho Chi Minh Stock Exchange, were also in great demand, she said.
Some experienced traders suggest buying unlisted stocks when they begin to rise since, without the 5 percent daily band within which listed stocks must keep, these can take a quantum jump.
Saigon Securities Inc. (SSI), one of the biggest securities firms in HCMC, said on its website Wednesday that the upcoming equitization of leading public sec-tor bank Vietcombank had turned unlisted bank stocks into investor favorites.
Le Hong Phong of Gia Quyen Securities Company said the price of Phu My Fertilizer, which has applied for a listing in HCMC, had risen from VND55,000 last month to VND90,000 now.
Time for buying
According to SSI, the State Securities Commission plans to set up a trading floor for unlisted stocks known as the OTC market.
“Many investors are not willing to take risks by trading unlisted stocks. Therefore, a specified place for unlisted stocks will raise investors’ confidence. The number of unlisted stocks is ten times higher than listed stocks,” Truong Duy Khiem of ACB Securities said.
Securities firms say that the explosive growth in trading of unlisted stocks this year is different from last year since investors seem to have carefully studied the market this time around. In the past, the market has been fueled by investors only seeking some of the action but with-out any understanding of the stocks.
TN
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