The Hanoitimes - A 1,000 minimum trading lot will limit the participation of small investors, while the stock market is moving towards fairness and equality. The Vietnam Association of Securities Businesses (VASB) has expressed concern over a proposal of the Ho Chi Minh City Stock Exchange (HOSE) in raising the minimum trading lot to 1,000 shares to ease the overload issue. A 1,000 minimum trading lot could reduce 40-50% of the total transaction volume on HOSE. Photo: Cong Hung “The way out for such issue is to upgrade HOSE’s trading system, and the state authorities should speed up the process as soon as possible,” VASB’s Vice Chairman Phan Quoc Huynh told tinnhanhchungkhoan.vn . According to Huynh, a 1,000 minimum trading lot would limit the participation of small investors, while the stock market is moving towards fairness and equality. Huynh referred to opinions from some securities firms as saying that the move would cause negative impacts on Vietnam’s stock market. Meanwhile, a higher minimum trading lot may cause a sharp decline in the trading volume for stocks of firms with large market capitalization in the context of unchanged stock value, said Huynh. “With expensive stocks, investors may have to spend hundreds of million dong to buy the minimum 1,000 shares,” he said. Chairman of SSI Securities Corporation Nguyen Duy Hung on his social account gave a more positive view on HOSE’s proposal, saying the trading system would be on the brink of collapse without appropriate measure. “Raising the minimum trading lot to 1,000 shares is necessary at the moment to keep the system running,” he said, adding when the system upgrading process is completed, the minimum trading lot could be reverted to 10. Hung said the overload of orders that forces the stock exchange to halt market trading is the result of a rapid-growing stock market that outpace the processing capacity of the stock market, as such, “a long-term solution is a …
Trade
Trading value hits monthly high as VN-Index dips
The index started off in the green before dipping by nearly 28 points starting at around 10.40 a.m. while a slight recovery in the afternoon was unable to bring it back to the starting point. It closed with a 18.43-point drop, ending a chain of five consecutive gaining sessions. Trading value on the Ho Chi Minh City Stock Exchange (HoSE), on which the index is based, rose 9.8 percent to VND16.8 trillion ($728.4 million), the highest since February 1. The bourse saw 95 stocks gain and 362 lose. Many investors reported overloads on the bourse even in the morning. There were times when buy orders were delayed for two or three minutes, they said. The VN30 basket, comprising the 30 largest capped stocks on the HoSE, saw 29 stocks in the red. VIC of biggest conglomerate Vingroup was the only ticker with no price change at VND106,900. Losing blue chips were led by TCH of real estate company Hoang Huy Investment Financial Services JSC, down 4.2 percent, and SSI of SSI Securities Corporation, down 4 percent. They were followed by five banks, including TPB of private TPBank, down 3.7 percent, STB of Ho Chi Minh City-based lender Sacombank, down 3.4 percent and TCB of the largest private lender Techcombank, down 3.2 percent. Foreign investors were net sellers for the 10th session in a row to the tune of VND229.6 billion, with the strongest pressure on VNM of dairy giant Vinamilk, VIC and VCB of state-owned lender Vietcombank. The HNX-Index for stocks on the Hanoi Stock Exchange, home to mid and small caps, gained 0.66 percent, while the UPCoM-Index for stocks on the Unlisted Public Companies Market fell 0.18 percent. …
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PM hints at dissolution and bankruptcy for loss-making mega projects
The Hanoitimes - The main goal is to minimize losses for the state budget and ensure lawful rights for workers, national security and defense, Prime Minister Nguyen Xuan Phuc has said. Inefficient projects must be dissolved or filed for bankruptcy in compliance with current legislation to retrieve state capital as much as possible. Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu Prime Minister Nguyen Xuan Phuc stressed the view at a government meeting discussing 12 ineffective and stagnant projects in the industry and trade sector on March 3. At present, three projects have been taken out of the monitoring list of poor-performing ones, including the DAP1 Hai Phong Fertilizer Plant, Ethanol Binh Phuoc and Ethanol Phu Tho, for becoming profitable. A report from the Ministry of Industry and Trade (MoIT) informed other projects are in operation but face large amount of accumulated losses, some are underway or being put on hold. One of the major obstacles preventing the state from withdrawing its capital in these projects is the ongoing legal disputes regarding the value of Engineering, Procurement and Construction (EPC) contracts for five projects. As these loss-making projects are putting huge burden on the state budget, PM Phuc urged government agencies to take drastic measures to resolve the issue, asking the MoIT to submit a solution for the Phuong Nam Pulp Factory before March 10. While the government stands firm on its stance of not pumping additional capital into those ineffective projects, Phuc requested the Committee for Management of State Capital at Enterprises (CMSC) to propose detailed solutions for the government to consider. “The main goal is to minimize losses for the state budget and the economy in overall, at the same time ensuring lawful rights for workers, national security and defense,” Phuc said. As of last October, total accumulated losses of 12 projects had reached VND26.3 trillion …
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