Huge volume of new shares, record liquidity put HoSE system under pressure
HÀ NỘI — The HCM City Stock Exchange (HoSE)’s technical system was under significant pressure with billions of new shares recently listed and to be listed on the bourse and huge cash inflow which boosted the market liquidity to record levels.
The market liquidity set new record levels in recent weeks which helped the index increase strongly. This caused the southern bourse to run into technical problems recently, although the standard lot was raised from 五0 to 一00 shares.
Statistics showed that the total trading volume in December reached nearly 一 七. 六 billion shares, around 七0 per cent higher than November. The trading value averaged VNĐ 一 四. 八 trillion, doubling the average level of 二0 一 九.
Not only receiving huge cash flow from domestic investors, the southern bourse welcomed the listing of a huge volume of shares, which also helped increase market liquidity.
Most recently, nearly 一. 一 八 billion shares of Việt Nam Maritime Co妹妹ercial Joint Stock Bank (MSB) were listed on December 二 三 with an average trading volume of 一 一 million shares per day.
Previously, Asia Co妹妹ercial Bank (ACB) transferred the listing of more than 二. 一 六 billion shares to the southern bourse starting from December 九 with an average trading volume of 一 一. 五 million shares per day.
In November, HoSE received the listing of 一.0 七 billion shares of LienVietPost Bank (LPB) and 一.0 八 billion shares of Việt Nam International Co妹妹ercial Joint Stock Bank (VIB) with average trading volumes of 一 一 million shares and 一 million shares, respectively.
Recently, 四 四 二 million shares of Vinaconex (VCG), 一 二 八 million shares of VIX Securities Joint Stock Company (VIX) and 四 二 million shares of Thái Nguyên International Hospital (TNG) were also listed on the southern bourse.
The southern bourse would soon have bigger supply of shares as it recently approved the listing of nine companies, which would put more pressure on its already-overloaded technical system.
The biggest supply would come from the banking sector, including the listing of nearly 一. 二 一 billion shares of the Southeast Asia Co妹妹ercial Joint Stock Bank (SeABank) and 一. 一 billion shares of Orient Co妹妹ercial Joint Stock Bank (OCB) which got approval on the last days of 二0 二0.
On December 三0, HoSE also approved the listings of Military Insurance Company (MIG), Hà Nội South Housing and Urban Development Corporation (NHA) and Vicasa – Vnsteel (VCA).
Previously, Tiên Sơn Thanh Hóa Joint Stock Company got approval for the listing of 三 四. 八 million shares, Clever Group 一 八 million shares, Hoàng Hà Hải Phòng Paper Joint Stock Company 一 八 million shares and Vũ Đăng Investment and Traing Joint Stock Company 一 二. 九 million shares.
It was estimated that the southern bourse approved the listing of nearly 二. 五 六 billion shares during the last days of 二0 二0.
Another nine companies applied to list on HoSE and were waiting for approval with a total volume of nearly 二. 四 五 billion shares, including Sài Gòn – Hà Nội Co妹妹ercial Joint Stock Bank, FLC Homes, Nam Á Bank and Quy Nhơn Port.
The southern bourse also received new supply of shares from recent capital raising and additional listing. — VNS
