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Ho Chi Minh City Stock Exchange ends 2007 on a high note
The Ho Chi Minh City Stock Exchange (HOSE) has closed out a successful 2007.
Le Hai Tra, Deputy Director of HOSE, said that the restructuring of the Stock Exchange from the Ho Chi Minh City Securities Trading Centre, along with the operations of continuous order matching, were the biggest achievements which contributed to the success of the exchange during 2007.
According to data from the exchange released on January 17, HOSE held 248 trading sessions worth 244 trillion VND (15.3 billion USD) in 2007.
The value represents an almost a three-time increase over 2006.
Tra said that the exchange could achieve this success thanks to the efforts of each member of the exchange in promoting the image and the quality of the bourse last year.
“The securities companies also contributed partly to the achievement, as they provided better services to customers and also helped raise the capital pouring into the market,” Tra said.
During 2007, the exchange created a capitalization of 359 trillion VND (22.4 billion USD), representing 37 percent of the nation’s gross domestic products (GDP), a 138 percent increase on the previous year.
Also, the exchange by December 12 had 327,000 accounts from 320,000 local and over 7,000 overseas investors.
The year 2007 marked a success for HOSE in share auctions. Through 78 auctions, the exchange earned a turnover of 36 trillion VND (2.3 billion USD), including huge initial public offering from Vietcombank.
Tra said that enterprises realized how much they could earn from the listings and auctions so the number of companies rising to the bourse in 2007 was quite remarkable.
“It also helped expand the scale of the market last year, which may contribute to the plan of the exchange to be the “New York Stock Exchange” of Viet Nam in the near future”.
According to Tra, the exchange would continue to run trial tests for remote trading in order to have it operating officially as soon as possible.
“We will try to have the most active preparations for online trading, in order to reduce risks in both trial and official runs,” Tran Dac Sinh, General Director of HOSE said noting that online trading could be applied in the second quarter of this year.
Sinh also said that the second trading session (for continuous order matching) may be longer in 2008.
Cooperations with international stock exchanges are still paid a lot of attention from the managers of HOSE this year.
“Overseas cooperation has created good opportunities for local companies to list their shares offshore. Also, the upgrade of management and technology systems has seemed easier. We plan to continue overseas cooperation this year, resulting in more overseas capital flowing into the local market, as well as setting up a position for the Viet Nam Stock Exchange in the global market,” Tra said.
According to Sinh, HOSE would organise a conference for CEOs of stock exchanges in ASEAN in March. It would also open forums and road shows overseas to call more foreign investment into the stock market this year.
“During 2007, the exchange found mistakes which effected the investors’ benefits. We did try out best to fix these problems to reduce losses from the mistake as much as possible,” Tra said.
He added that the exchange this year would promote the management mechanism to have better management in the market.
“We hope to lessen the mistakes and troubles, as well as protect the investors more and more, in order to have a better image this year,” Tra said, noting that the securities companies should work with the exchange to have unified development in 2008.
Last year, HOSE welcomed 41 members, raising the total number of member companies to 62, with a total charter capital of 9.7 trillion VND (606.3 million USD).
VNA
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