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Seeking commodities for UPCoM
A lot of public companies, which have good business result, still have registered for listing, despite the continued price falls on the stock market. This has sparked the hope that the market of unlisted public companies (UPCom) will have good commodities.
In principle, nearly 1,000 public companies, half of which are unlisted, could be the big source of commodities for UPCom.
However, analysts have pointed out that many companies remain uninterested in joining the market. Several reasons have been cited to explain this.
Firstly, if public companies want to improve their liquidity, they would rather list their shares on either the Hanoi or HCM City bourses, rather than on UPCom.
Secondly, a lot of public companies avoid registering transactions due to their bad business results. The prices of the share items may drop drastically once the share prices are defined and the information is made public.
The lack of commodities for UPCom proves to be the biggest reason behind the tardiness in putting UPCom into operation. Besides, the fact that there have not been regulations about the allowed ceiling foreign ownership ratio in the share items of the UpCom market has also made the opening of the market delayed. Meanwhile, infrastructure items have been completed and the regulations on stock transactions on UPCom have been set up.
On November 20, 2008, the Ministry of Finance ratified the regulations on the organisation and transaction management of unlisted securities at the Hanoi Securities Trading Centre (HASTC). On November 25, HASTC began the training course on the organisation and operations of the unlisted public companies (UPCom). A lot of things have been done in order to bring UPCom into operation in the first quarter of 2009.
Meanwhile, both securities companies and investors expect the operation of UPCom. The former wants UPCom to become operational soon because they want more places to do business in the difficult times. Meanwhile, investors want to have an address where they can safely transact the shares of public companies they are holding.
In related news, Vietinbank’s Securities Company (VietinbankSC) will auction 13,397,472 shares in April with the starting price of VND10,200/share. The auction proves to attract special attention from the public. Most of securities companies have fallen into big difficulties since the income is not high enough to cover expenses. The prices of many listed share items of leading securities companies, including SSI (Saigon Securities incorporated), and Bao Viet Securities, are staying at low levels.
VietNamNet/DTCK
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