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VietNamNews

Need to extend trading hours questioned

Update: February, 04/2012 - 09:18

 

An investor monitors the electronic board at Rong Viet Securities. — VNA/VNS Photo Pham Hau
HA NOI — The HCM City Stock Exchange has finished gathering opinions from securities companies about extended trading hours, which the exchange expected to institute on the 20th of this month.

The combined market value of the nation's two stock exchanges is currently averaging only about 40 per cent of 2010 levels, and few brokers believe that extending trading time would increase trading value or share liquidity.

In turn, they said, many investors were against introducing longer sessions.

"Restructuring of the stock market is needed, but prolonging the sessions is not necessarily an urgent reform at this point," said Kim Eng Securities Co general director Le Minh Tam.

Under the plan, trading would take place on the HCM City bourse between 9am and 11:30am and again between 1pm and 2:15 pm.

Another securities company representative, on condition of anonymity, said that adding only a single hour of order-matching in the afternoon was too little, and he recommended extending this by another hour or two.

"Although it creates some difficulties for smaller or ill-equipped securities firms, it would be a good filtering mechanism within the system," he said.

Other analysts and investors were more supportive of the exchange's plan.

"Trading hours in many markets in the region last for up to eight hours," said the head of Mekong Housing Bank Securities Co's brokerage division, Hoang Thach Lan. "Since Viet Nam is integrating into regional markets, we should also appy that. Regular investors would have more time to meet their demands, while brokerages would probably receive more transaction fees."

Dragon Capital Fund manager Dominic Scriven said investors from other countries could enjoy investing in Vietnamese stocks more during afternoon trading time due to time zone differences.

According to a poll conducted by Dau tu Chung khoan (Securities Investment), investors also wanted the HCM City Stock Exchange to lift its daily price fluctuation range from the current +/- 5 per cent to +/- 7 per cent. — VNS

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