|
Investors adopt wait-and-see attitude to new exchange
Vietnam’s new exchange for informally traded stocks, known as UPCoM, is yet to lure investors who are waiting for more companies to trade on the floor to boost liquidity.
Officials said the opening of the regulated over-the-counter (OTC) market last Wednesday aimed to enhance transparency and protect the interests of investors by reducing risks, but an investor at the Ho Chi Minh City branch of the Bao Viet Securities Company said she still prefers the unregulated OTC market as the liquid banking stocks are still on it.
“Banking stocks [such as Military Bank, Eximbank] have highest liquidity, so I like them. For unpopular stocks, they are unattractive despite being listed on UPCoM,” said Lan, who wanted to be identified only by her first name.
Another investor at Bao Viet Securities, Hoa, said she does not like trading on UPCoM as its settlement period is longer than the unregulated OTC market.
While settlement at UPCoM is T+3, where T denotes transaction date, there are no rules for settlement on the OTC market and traders can settle immediately.
The shares on the OTC market typically exchange hands on street corners outside brokerages, in coffee shops, and between friends and family.
“It is necessary to have more shares on the UPCoM market, at least like Ho Chi Minh City and Hanoi stock markets, then investors will have more options for trading,” said Hoa, adding, “With very few stocks on UPCoM now, I don’t like it.”
The new exchange, which opened at 100 points last Wednesday, finished the week at 87.89. Only around 325,000 shares worth VND4.95 billion (US$289,000) changed hands last Friday.
Deputy General Director Nguyen Thi Hoang Lan of the Hanoi Stock Exchange said the number of investors joining UPCoM is modest as they are still cautious about the new market.
In a bid to lure investors, Vu Bang, Chairman of the State Securities Commission (SSC), said investors would be allowed to buy and sell the same stock within a session and engage in margin trading. He did not give a time frame for these regulations.
Pham Huy Chi, General Director of SME Securities Corporation, said SSC should cut the settlement time and increase daily limit moves to attract traders.
Price moves for shares of companies traded on UPCoM is now limited to 10 percent a day.
According to SSC, all publicly traded companies have to be traded on the UPCoM market by the end of this year.
“With nearly 1,000 publicly traded companies having registered with the SSC, their trading on UPCoM will make the market lively,” said Truong Duy Khiem, Director of ACB Securities’ Le Ngo Cat branch.”
thanhnien, dtck
|
