Big caps move to HOSE from Ha Noi in bid to boost share prices, liquidity


HÀ NỘI – Several big companies are planning to follow their peers in moving their shares from Ha Noi to the HCM Stock Exchange (HOSE) in an attempt to boost stock prices and improve liquidity.

Since late September, the HOSE has approved the listing of around 300 million shares from the Hà Nội Stock Exchange (HSE).

All the companies moving their listings are large-cap companies on the HSE.

Almost 126 million shares of Central Hydropower JSC (CHP) made their HOSE debut on September 29. It used to be among the 15 largest companies listed on the Hà Nội bourse.

Last week, Sài Gòn Thương Tín Real Estate (Sacomreal) JSC (SCR) and An Phát Plastic and Green Environment JSC (AAA) also got the nod to move their shares to HOSE.

Sacomreal and An Phát Plastic are two of 30 highest valued stocks in the Hà Nội market with charter capitals of nearly VNĐ2.2 trillion (US$99 million) and VNĐ520 billion, respectively.

Sacomreal officials said the shift was aimed at boosting the liquidity of its shares.

An Phát Securities Co said the southern bourse has higher standards and listing there would enhance its business reputation.

In addition, HOSE allows a minimum trading volume of 10 units, facilitating trading by shareholders with holdings of less than 100 shares, the company said.

Established in July 2000 with just two listed companies, HOSE now has 317 companies with a market capitalisation of VNĐ459 trillion ($20.6 billion). This accounts for over 75 per cent of the total capitalisation value of the Vietnamese securities market.

Liquidity in HOSE is typically three to four times higher than in Hà Nội. The average trading value at HOSE had reached VNĐ2.3 trillion by the end of September.

Earlier in March this year, the HCM City bourse welcomed nearly 13 million shares of the Tây Ninh Cable Car Tour Company from the Hà Nội bourse.

Last year, it also received switches from real estate developer FLC Group (FLC) and F.I.T JSC (FIT).

Other companies including Vicem Materials Transport Cement JSC (VTV) and insurance company PVI Holdings (PVI) are reportedly preparing for a similar shift.

On the other hand, shifting from HOSE to Hà Nội happens very rarely. A rare exception was that of Mineral Ferrous Metallergy JSC (KSK) in 2014.

Source: Vietnam News

Photo: CBR Investment AG