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The Hanoitimes – A 1,000 minimum trading lot will limit the participation of small investors, while the stock market is moving towards fairness and equality.

The Vietnam Association of Securities Businesses (VASB) has expressed concern over a proposal of the Ho Chi Minh City Stock Exchange (HOSE) in raising the minimum trading lot to 1,000 shares to ease the overload issue.

A 1,000 minimum trading lot could reduce 40-50% of the total transaction volume on HOSE. Photo: Cong Hung

“The way out for such issue is to upgrade HOSE’s trading system, and the state authorities should speed up the process as soon as possible,” VASB’s Vice Chairman Phan Quoc Huynh told tinnhanhchungkhoan.vn .

According to Huynh, a 1,000 minimum trading lot would limit the participation of small investors, while the stock market is moving towards fairness and equality.

Huynh referred to opinions from some securities firms as saying that the move would cause negative impacts on Vietnam’s stock market.

Meanwhile, a higher minimum trading lot may cause a sharp decline in the trading volume for stocks of firms with large market capitalization in the context of unchanged stock value, said Huynh.

“With expensive stocks, investors may have to spend hundreds of million dong to buy the minimum 1,000 shares,” he said.

Chairman of SSI Securities Corporation Nguyen Duy Hung on his social account gave a more positive view on HOSE’s proposal, saying the trading system would be on the brink of collapse without appropriate measure.

“Raising the minimum trading lot to 1,000 shares is necessary at the moment to keep the system running,” he said, adding when the system upgrading process is completed, the minimum trading lot could be reverted to 10.

Hung said the overload of orders that forces the stock exchange to halt market trading is the result of a rapid-growing stock market that outpace the processing capacity of the stock market, as such, “a long-term solution is a must,” he suggested.

Newly-appointed General Director of HOSE Le Hai Tra previously said more developed markets such as Japan, Taiwan or Singapore had all risen the minimum trading lot.

He estimated a 1,000 minimum trading lot could reduce 40-50% of the total transaction volume, while taking the liquidity to a new level.

In another move, the State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, has instructed the Hanoi Stock Exchange (HNX) to process transactions of stocks from the HOSE as another solution to ease the latter’s overload issue.

However, an option to move to the HNX would not apply for stocks under the VN30 Index, comprising 30 largest stocks on the HOSE.

The new change was set to take effect from March 3, 2021 until further instruction from the SSC.

Both before and after the Tet holiday, the overload occurred repeatedly on HOSE whenever liquidity in a trading session hit around VND14-17 trillion (US$608-738 million).

The SSC attributed the overload issue on the HOSE to the transaction processing capacity of the stock exchange that limits the number of transactions per day, while a recent surge of orders has exceeded the expectation of the market.

PANO – The 14 ^th ASEAN Finance Ministers Meeting opened in Nha Trang on April 8 ^th with the participation of the representatives from the World Bank, the Asian Development Bank and the International Monetary Fund.

Addressing the event, Mr. Juan Jose Daboub, the World Bank’s Managing Director, congratulated ASEAN on its role from the start of the global economic crisis. He said developing countries of the East Asia & Pacific region are the first to emerge from the global economic crisis and have the potential to grow rapidly in the next decade despite the uncertainties in the global economy, if they carry out reforms with renewed vigor and further cooperate on regional economic integration and climate change.

The WB Managing Director also discussed with Deputy Prime Minister Nguyen Sinh Hung and Governor of the State Bank of Vietnam, Nguyen Van Giau, recent economic and social developments in Vietnam as well as their partnership in support of the country’s development.

Mr. Daboub affirmed the World Bank’s willingness to continue its support to Vietnam in the country’s transition to a market economy and scale up its financial assistance to Vietnam to help narrow the infrastructure gap, strengthen access to basic social services, particularly in poorer ethnic minority communities, and tackle emerging middle income country challenges such as building capacity, strengthening research and technology and expanding targeted social protection systems.

He also announced that the World Bank’s financial commitments since July 2008 have reached US$100 billion

For their part, Deputy Prime Minister Nguyen Sinh Hung and Governor Nguyen Van Giau. all expressed hope that the Bank will continue to provide Vietnam with valuable support for the country’s socio-economic development.

By Vu Hung – Photo: VOV

The results of 2020 business and 2021 outlook support the rise of bank stocks

Ending the last session of February, the VN-Index stood at 1,168.47 points, corresponding to an increase of 111.86 points (10.59 per cent) compared to the previous month. The HNX-Index increased by 35.01 points (16.3 per cent) to 249.22 points. The UPCoM-Index also increased 4.56 points (6.33 per cent) to 76.64 points.

Large-cap stocks recovered well in February as only the NVL ticker of Novaland decreased by 0.7 per cent. Meanwhile, as many as 14 other stocks in this group increased by over 15 per cent. The shares of VPBank (VPB), rose the most among the top 30 by market capitalisation with over 33 per cent. Following that, Thaiholdings (THD) also increased by 26 per cent and was a key factor helping the HNX-Index continue to break out recently.

February was also a good month for banking stocks as, besides VPB, the stocks of Vietnam International Commercial Joint Stock Bank (VIB), Asia Bank (ACB), Techcombank (TCB), or Vietinbank (CTG) also increased by over 20 per cent.

Particularly, the last trading week of February recorded a rise in most bank stocks. At the price of VND33,000 ($1.44), Asia Commercial Bank (ACB) was the strongest increase with nearly 9 per cent. Military Bank (MBB) led in liquidity with nearly 72.1 million shares. Military Bank shares closed the morning session at VND28,200 ($1.23) a share.

Vietnam Prosperity Bank (VPB) reached VND40,800 ($1.77) while Techcombank (TCB) reached VND40,200 ($1.75), Vietnam International Bank (VIB) hit VND43,200 ($1.88) a shares, and HCMC Development Bank (HDB) increased to VND26,200 ($1.14) per share. Notably, LienViet Post Bank (LPB) hit the ceiling price on March 1, recording liquidity of over 36 million shares and closing the session of March 2 at VND16,100 (70 US cents) a share.

PYN Elite Fund said that the VN-Index can completely increase to 1,800 points in 2022 with favourable macroeconomic factors, including high GDP growth and still attractive market valuation compared to regional countries with the potential to be upgraded to the emerging market status. Once the upgrade is confirmed, banking stocks will lead the rise.

In the “Vietnam – Asia’s new success story”, PYN Elite expressed the belief that the prospects of Vietnam’s banking industry in the coming years are very positive.

“Bank shares have benefited from negative price movements over the past few years. During this time, we have sharply increased the proportion of banking stocks in our portfolio to nearly 40 per cent. We believe that these banks will have strong growth in the next few years and at the same time profit growth will be strong,” shared PYN Elite.

One of the factors that help banking stocks recover and continuously increase in price is the result of 2020 business and 2021 outlook of the banking and finance industry.

Banks continue to benefit from the lower cost of capital as deposit rates have fallen from 2 to 2.5 per cent in 2020 and a sharp decline in the second half of 2020 extends to 2021.

Besides, under Circular No.01/2020/TT-NHNN, in the fourth quarter of 2020, restructured debt began to decline in the group of listed banks.

Specifically, the ratio of restructured debt to total outstanding loans at some listed banks has decreased from 2.6 per cent in the third quarter of 2020 to 2 per cent in the fourth quarter of 2020.

According to an expert at SSI Securities JSC, the profit of banks in 2020 can be managed more than expected at the beginning of the year. The company estimated that the average earnings before tax of banking stocks will grow 21 per cent on-year.

The 2021 strategy report of VNDirect Securities JSC forecast that the profit of banks will increase in 2021. VNDirect expected the investment disbursement rate will continue to be high and the State Bank of Vietnam will maintain its monetary policy to promote economic recovery and increase signals.

Quang Binh (VNA) – A dead whale weighing about one tonne has been found washed up on a beach in the central province of Quang Binh , a local official said on March 3.

Nguyen Van Huu, Chairman of the People’s Committee of Quang Tho ward in Ba Don town said local authorities coordinated with residents to bury the decomposing whale, measuring 7-8m in length, immediately after finding the carcass on March 2.

Vietnamese coastal residents have believed that whales would help fishermen at sea. So, they often rescue the animals whey they run aground or bury the dead ones.

Cau Ngu ( whale worship ) festival is part of the cultural identity of Vietnam’s central coastal localities, which has been preserved and passed down through the generations.

The festival is held annually after the Lunar New Year, when fishermen start a new fishing season. It aims to express gratitude towards Nam Hai for safeguarding fishermen, and pray for bumper hauls of fish, safe voyages and peace for the nation./.

VNA

Buenos Aires (VNA) – Newly-accredited Ambassador of Vietnam to Argentina Duong Quoc Thanh on March 2 presented a letter of credentials to President Alberto Fernandez who showed his belief that the ambassador will make contributions to developing the two countries’ relations.

Expressing his honour to be the Vietnamese Ambassador to Argentina, Thanh extended Party General Secretary and State President Nguyen Phu Trong’s greetings to the Argentine President and his spouse as well as the Argentine Government and people.

He affirmed he will do his utmost to boost bilateral friendship and cooperation in politics, economy, culture, and science and technology.

He briefed the host on Vietnam’s recent socio-economic achievements and the outcomes of the recent 13th National Party Congress with major targets and orientations for national development in the new era.

President Fernandez appreciated Vietnam ’s economic development achievements, affirming that the country’s success in the fight against the COVID-19 pandemic is a bright spot and experience for many nations around the world.

He confirmed Vietnam is one of Argentina’s important partners in the Asia-Pacific region and believed the bilateral comprehensive cooperation will develop further in the future./.

VNA