Vietnam Stock Market News

Stock market bustling, more businesses enter the bourse   2009-08-13 - DTCK

As the stock market has warmed up after a long cold period, a lot of companies are moving ahead with plans to list shares.

  

As the stock market has warmed up after a long cold period, a lot of companies are moving ahead with plans to list shares

Just in the past two months, many companies have got approval from the Hanoi and HCM City Stock Exchanges to list on the respective bourses. These include big names like Vietcombank and Vietinbank (banks) and Bao Viet (insurer).

 

On August 11, 25 million shares of the Southern Industries Joint Stock Company (CSM) and eight million shares of the Hanoi Education Investment and Development (EID) hit the stock market.

 

Moreover, the HCM City and Hanoi stock exchanges have released legal documents officially approving the listing of some companies. This means that in August, the two bourses will welcome some ‘newcomers’, eight million shares of VNL, a trade and freight forwarding company, 81 million shares of Phuoc Hoa Rubber Company (PHR), 10.7 million shares of Urban Development and Industry Company No 2 (D2D).

 

Phuong Nam Education Development and Investment has also got approval to list 6.48 million shares, Nagakawa has got the go-ahead on the listing of 10 million shares worth 100 billion dong in face value.

 

By the end of the year, there will be three more banks listing shares on the bourses: Eximbank, Military Bank (MB) and Saigon Commercial bank (SCB). With the chartered capital of Eximbank at 7.219 billion dong, of SCB at 3.635 billion dong and MB Bank at 3,820 billion dong, the total market capitalisation value of the HCM City Stock Exchange will increase by 35,155 billion dong.

 

On the OTC, the shares of the three banks have been hunted by investors since they heard about the listing of the banks on the official bourses.

 

The State Bank of Vietnam is urging commercial banks to speed up their plans to list on the bourse.

 

Not only the two official bourses, UpCom (the market of unlisted public companies) is also forecast to become more bustling in the time to come as 30 companies are planning to join the market. Sources say that some 150 public companies which have shareholders’ books managed by securities companies will have to join UpCom prior to September 30.

 

Companies have every reason to list on the bourses at this moment. As the stock market has become more bustling and stock prices are on the increase, it is advantageous for companies to enter the bourses now. Meanwhile, the information about the newcomers on the market has also been applauded by investors, since they will have more choices for investment.

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