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Payments to clear faster in some stock trades
The Viet Nam Securities Depository Centre will begin to more quickly clear share transactions conducted through the negotiation method, the centre announced yesterday.
Investors who buy or sell shares through negotiation trading with a volume of 100,000 shares or more would receive securities or cash in their accounts within one day, instead of the previous three days, according to the centre.
The move was intended to promote stock market liquidity at a time when the daily trading band remains tightened by returning capital into the hands of investors as soon as possible for reinvestment.
"Faster payments will have a certain positive impact on the stock market at this time, and may help spur trading on the stock market under the present narrow trading band," said Viet Nam Association of Financial Investors general secretary Nguyen Hoang Hai, but he warned against undue optimism over the impact of the move.
"The move will create advantages mostly for foreigners and institutional investors because they trade in large volumes," Hai said. "However, the technology in trading centres is not advanced enough to implement one-day clearance at tiny volumes from retail investors."
An analyst from Kim Long Securities who asked to remain anonymous commented, "Payment within a day is consistent with the common trend on other stock markets worldwide."
The current move would have little immediate impact because the negotiation trading was small compared to share transaction conducted through order matching.
"Retail investors play a major role on this stock exchange, but this method doesn’t really help them," he said. "If it has any impact, it will be psychological," he said, saying the market may see a modest bump over the next couple of days in reaction to the news.
VNN
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