Stocks switching to HNX to start transaction on March 29

Four public firms that have left the Ho Chi Minh City Stock Exchange (HOSE) and listed their shares on the Hanoi Stock Exchange (HNX) would start their first trading session here on March 29.

Investors at a securities center in Hanoi. Photo: Pham Hung

Those in subject are Aquatex Ben Tre (HOSE: ABT), Bibica Corporation (HOSE: BBC), Southern Seed Corporation (HOSE: SSC), and Vietnam Fumigation Company (HOSE: VFG), noted the HNX in a statement.

The State Securities Commission of Vietnam (SSC), the country’s stock market watchdog, previously released an instruction calling for public firms to switch from HOSE to HNX in a move to address the issue of surging orders on HOSE that forced the stock exchange to halt market trading.

According to the SSC, public firms in subject would have their stocks temporarily suspended for transaction for at least three working days and resume the process on the fourth day on HNX since the last trading session at the HOSE.

To ensure smooth switching process, the HNX, HOSE and Vietnam Securities Depository (VSD) have agreed on procedures for public firms requesting to move to HNX.

Upon receiving request for leaving, the HOSE would make an announcement for the last trading session of the stock in subject at the stock exchange.

The HNX then is set to make a similar announcement for the stock’s first trading session, while the VSD would be responsible for transferring data from HOSE to HNX.

The frequent overload of orders on HOSE is causing frustration among investors, as the issue occurred multiple times in this exchange whenever liquidity in a trading session hit around VND14-17 trillion (US$608-738 million).

The SSC attributed the overload 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.