Listing regulations spur trading on the UPCoM
Listing regulations spur trading on the UPCoM
New data showed that regulations on the Unlisted Public Company Market (UPCoM) have been stimulating trades in Ha Noi.
Decree 51, which went into effect in 2014, forces State-owned enterprises to list shares in an official stock exchange or on UPCoM 90 days after making an initial public offering (IPO). This and the recent expansion in daily trading from 10 per cent to 15 per cent in the UPCoM helped increase trades.
According to the Ha Noi Stock Exchange, the UPCoM organiser and operator, more than 200 companies have listed shares here with total market capitalisation of more than VND38 trillion (US$1.74 billion).
The daily trading value reached nearly VND70 billion ($3.2 million) this week. Wednesday saw the highest value, nearly VND150 billion ($6.9 million). This nearly doubled the average per-session value of the past six months, VND40 billion ($1.8 million).
However, trade is mixed, as a small number of stocks have high liquidity while most others have seen sluggish trading.
Only six codes often have trades of more than 100,000 shares per day. Twenty-one stocks have daily trading volumes of between 10,000 and 100,000 shares. Meanwhile, more than 60 per cent of of stocks have traded less than 1,000 shares per session.
Despite posting heavy losses, beverage company AnViFish (AVF) is among the most active stocks in the UPCoM with daily trade ranging from 200,000 to 500,000 shares.
The company was forced to move from the Ha Noi Stock Exchange to the UPCoM on June 18 after it recorded a loss of VND893 billion ($41 million) in 2014, making its equity charter to negative VND370 billion ($17 million).
Other speculative stocks include Petroleum Dong Do (PFL), metal producer Huu Lien Asia Corp (HLA) and Viet Hai Shipping & Real Properties Corp (VSP) with trades of 50,000 to 300,000 shares per session.
Newly listed shares like chemical company DAP-Vinachem (DDV) and Tri Viet Securities Co (TVB) also attracted investors' interest.
DDV's average trading volume reached nearly 360,000 shares per day after just over one month of being listed, just behind AVF and Sacombank Securities Co (SBS). However, the company posted a poor performance with a loss of VND38.4 billion ($1.8 million) in the second quarter of 2014.
TVB's result was better with a profit of VND8.3 billion ($381,000) in 2014, a tenfold increase over 2013.
