Friday, January 22, 2021 7:11:40 PM - Markets closed
VN-INDEX 1,166.78 +2.57/+0.22%
HNX-INDEX 240.12 -0.16/-0.07%
UPCOM-INDEX 77.60 +0.13/+0.17%
Margin trading should be allowed on UPCoM
Vietnam News - 11/18/2020 1:32:12 PM
 (0 ratings. You must sign in to rate.)
Margin trading should be allowed on the Unlisted Public Company Market (UPCoM) to increase the exchange’s liquidity.
 
Margin trading allows investors to buy more stock than they would be able to normally.
 
UPCoM has its own advantages such as a large daily trading band, many good fundamental stocks with stable operations such as Vissan, subsidiaries of Masan Group and Tân Cảng Sài Gòn Corporation, said Nguyễn Hồng Khanh, head of market analysis at Việt Nam International Securities Joint Stock Company (VIS).
 
“These stocks, if allowed with margin trading, will attract more cash flow,” Khanh said.
 
“It is necessary to encourage State-owned enterprises to quickly register for transactions on UPCoM after equitisation, which will make divestment easier and more attractive to investors,” Khanh said.
 
Liquidity on UPCoM was modest, focusing mainly on banking stocks. The rest have low liquidity, said Trương Hiền Phương, senior director of KIS Vietnam Securities Corporation.
 
“UPCoM is a capital mobilisation channel that plays an important role in the equitisation and divestment of State-owned enterprises. In order to attract more cash flow into UPCoM, it is necessary to tighten the conditions on listing and improving the standard of information disclosure to gain investors' confidence,” he said.
 
The Hà Nội Stock Exchange (HNX), which operates and manages the UPCoM, has petitioned State management agencies to consider allowing margin trading on UPCoM.
 
HNX said the move aimed to meet the needs of investors, improve market liquidity and increase the space for securities companies to diversify.
 
If the proposal is accepted, the HNX said certain shares meeting requirements related to business performance, corporate governance and operational information transparency would be eligible for margin trading on UPCoM.
 
There are now nearly 900 enterprises trading on UPCoM. In October, there were 813.8 million shares transferred, worth VNĐ11.4 trillion, equal to 6.3 per cent of the total trading value on HOSE and 60.6 per cent of the total trading value on the HNX.
 
On average, the transaction value on UPCoM reached more than VNĐ518.5 billion per session in October, up 19.59 per cent over the previous month.
 
Some stocks which meet the conditions for margin trading included the Airports Corporation of Vietnam (ACV), Bình Sơn Refinery and Petrochemical Joint Stock Company (BSR) and the Việt Nam Engine and Agricultural Machinery Corporation (VEA), according to HNX. — VNS
 
Read original article here
 
Newer News
20/01 VN-Index suffers big loss, liquidity exceeds 1 bln USD
06/01 Number of new securities trading accounts reaches record high
30/12 Shares advance on high demand, VN-Index nearing 1,100 points
28/12 Vietnam’s GDP growth estimated at 2.91 pct this year
25/12 Stocks collapse on worries about system failure
17/12 Shares reach one-year peak on banking stocks
15/12 Financial stocks boost markets
10/12 VN stocks rebound, focus switches to banking, securities firms
07/12 Market’s uptrend may weaken after five consecutive gaining weeks
01/12 VAFI says no to increase the minimum trading lot to 100 shares.
Older News
16/11 Market rally to go on, corporate earnings in the sight
11/11 Trading value on HNX up 16.5 per cent in October
06/11 VN-Index ends 4-day rally on worries over US election
04/11 Shares narrow gains on market swing
28/10 Local stocks dragged by profit-making attempts
22/10 Individual purchases still key to market growth, VN-Index expected to end year at 1,000 points
13/10 VN-Index loses momentum, banks progress on cash-preserving decision
06/10 Funds reports good performance in Q3
30/09 Stock market dives, profit taking rises in banking, consumer and energy sectors
30/09 Billions of banking stocks to flood market under dividend plans
 
Newsletter Signup
Top Stories
Number of new securities trading accounts reaches record high
Trade surplus posts record high since 2016
Reference exchange rate up 1 VND on June 5
Reference exchange rate up 6 VND on December 10
Reference exchange rate continue going down
Market Update
Last updated at 3:10:09 PM
VN-INDEX 1,166.78 +2.57/+0.22%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.