Wednesday, May 22, 2024 3:47:49 PM - Markets open
VN-INDEX 1,266.91 -10.23/-0.80%
HNX-INDEX 245.15 +1.86/+0.76%
UPCOM-INDEX 94.70 +0.25/+0.26%
Share auctions plummet to 16-year low
Vietnam News - 12/19/2023 2:59:55 PM
 (0 ratings. You must sign in to rate.)
 The number of share auctions in the Vietnamese stock market has reached its lowest level in the past 16 years, according to recent statistics from the Hà Nội and HCM Stock Exchanges (HNX and HoSE).
In 2023, only three share auctions have taken place so far, with a total auction value of VNĐ2.7 trillion (US$111 million). This represents the lowest number of auctions since 2007.
HoSE recorded a single successful auction, with Petrolimex divesting 120 million shares (equivalent to a 40 per cent stake) in PGBank (PGB) with a value of VNĐ2.56 trillion. On HNX, there were two successful auctions involving Tia Sáng Battery (TSB), selling 3.44 million shares, and EVNNPC auctioning 2.34 million shares. The total value of share auctions on HNX reached nearly VNĐ164 billion.
The decline in share auction activities can be attributed to various factors, including the challenging macroeconomic conditions in 2023. The VN-Index has struggled to surpass the 1,100-point threshold for several months, reflecting the difficult situation in the stock market.
Experts point out that the lack of notable new companies entering the market is one of the reasons for the decline in share auctions. This has led to a continuous decrease in auction values over the years, from a peak of VNĐ130 trillion in 2017 to only VNĐ2.7 trillion last year.
The number of newly listed shares in 2023 remains modest. Both HoSE and HNX exchanges have listed only nine new stock codes and one fund certificate, with many of them being transferred from UPCoM and not considered entirely new listings.
Companies like Nova Consumer (NCG), Tôn Đông Á (GDA), and VNG (VNZ) have decided not to list and are only traded on UPCoM. Moreover, several stocks have been delisted from HoSE and HNX due to violations of information disclosure regulations and financial losses.
Đinh Thế Hiển, an economic expert, told Việt Nam News that the lack of new listings is primarily due to businesses not perceiving the favourable timing for going public. After a challenging year, the stock market has only experienced a slight recovery, making it unfavourable for businesses to raise capital at reasonable costs through IPOs.
"State-owned enterprises face additional challenges in the equitisation process as they require strategic partners to participate. However, the global economic difficulties caused by the COVID-19 pandemic have led to a narrowing of operations for many manufacturing corporations and financial investors, making it more challenging for state-owned companies to find strategic investors."
Hiển emphasised the importance of a vibrant market with new products and listings. The presence of more listed businesses and quality stocks attracts investors and contributes to the development of the capital market. —VNS
Read original article here
Newer News
08/05 Positive investment opportunities in Vietnamese stocks with potential Fed rate reduction
08/05 VN adds over 110,000 new securities accounts in April, bringing total to 7.7 million
06/05 Cautious rise amid low supply and cash flow, investors advised to monitor resistance area
02/05 Market likely to face some fluctuations
02/05 Outstanding margin loans reach record high amidst strong equity growth
02/05 Interest rates to rise but not have major impact on stock market: economist
19/04 Market upgrade to begin a new phase of development
16/04 Market plunges, HOSE's value evaporates $10 billion
16/04 VN anticipates market impact as KRX stock trading system launches
10/04 Banks and oil stocks endure a tough day, leaving with market volatility
Older News
18/12 Prime Minister orders swift upgrade to stock market
18/12 Aviation stocks get a boost as VN - China cooperation strengthens
14/12 Vietnamese stocks suffer decline as banking and securities shares slide
14/12 Market expands in 2023 despite strong turbulence
13/12 Market expands in 2023 despite strong turbulence
12/12 Public investment stocks are even more attractive
11/12 Market expected to move positively on domestic cash flows
09/12 Shares mixed amid investors' reluctance
08/12 Market falls, foreign investors continue withdrawing capital
07/12 Market finishes higher on return of domestic investors
Newsletter Signup
Top Stories
VN adds over 110,000 new securities accounts in April, bringing total to 7.7 million
Cautious rise amid low supply and cash flow, investors advised to monitor resistance area
Interest rates to rise but not have major impact on stock market: economist
Businesses concerned about rising exchange rate pressure
Gold bar auction to be resumed after 11 years of suspension
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,266.91 -10.23/-0.80%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.