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UpCom quiet, why?
Few commodities and little demand both have made UpCom market (market of unlisted public companies) unable to attract investors.
While both the Hanoi and HCM City bourses and OTC market are very bustling, very few transactions are taking place on UpCom.
Officially put into operation on June 24, the market has been witnessing a lot of quiet trading sessions due to lack of good commodities.
UpCom market made its debut at 100 points, but the UpCom Index has since dropped to 67 points (30 of 47 trading sessions saw the UpCom Index decreasing). The total volume of shares put into transaction at UpCom is 12.3 million shares worth 169 million dong. On average, 250,000 shares are traded every day, worth 2.3 billion dong.
There are many reasons behind the gloomy market. Analysts say that current regulations do not require the companies listing on UpCom to expose information; therefore, investors do not know much about the companies.
Moreover, investors say there is inequality between securities companies and investors. Securities companies have the right to purchase and sell a share item within a day, while investors cannot. The risks are also high with the current regulation on T+3 payment (money is transferred into investors’ accounts three days after investors make transactions).
According to the State Securities Commission, 150 companies will have to list on UpCom from now to the end of the year. However, experts say that if Vietnam does not improve the current legal framework, UpCom is not likely to prosper.
On August 28, the UpCom Index stayed at 65.51 points, down by 0.59 points (0.98 percent). 300.771 shares were transferred worth 3 billion dong. This was the 10th consecutive trading session which witnessed the UPCom Index decrease.
vietnamnet, dtck
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