HoSE calls on extending stock trading hours
The Ho Chi Minh City Stock Exchange (HoSE), the country’s main bourse, is seeking permission from the State Security Commission to extend the afternoon trading hours by 45 minutes.
The HoSE has submitted a document to the SSC, asking to be able to close the market at 3 p.m. instead of the current closing time of 2:15 p.m.
Earlier, the Hanoi Stock Exchange (HNX) also made a similar proposal.
The stock market currently opens from 9 a.m. in both Hanoi and HCMC.
The proposal came after many investors complained that the trading time of more than an hour in the afternoon is too short to reflect the market movement, as well as for transactions to be made.
HoSE also sent documents to inform several securities companies about the extension.
It is expected that the extended trading hours will be piloted from July 1 to 5 in HCMC, and from July 8 in Hanoi, according to sources.
Specifically, the afternoon session will start at 1 p.m., and end at 3 p.m.
There are no changes in trading hours for the morning sessions.
The trading hour extension plan has sparked opposite opinions from industry insiders.
While supporters hoped it would increase liquidity and lure more investors, others said longer trading hours would only make investors and securities companies more tired, while bringing in little benefit.
With the central bank last month cutting interest rates for an eighth time since the early 2012, and the government stepped up efforts to combat bad debts, the VN Index (VNINDEX) has rallied 27 percent this year, the best performer among benchmark gauges in Southeast Asia, according to Bloomberg.
The nation’s stocks are valued at US$45.6 billion, compared with $595.8 billion in Singapore, the region’s largest market, Bloomberg said.
About $51 million of securities traded daily on average this year on the Ho Chi Minh City Stock Exchange, the country’s main bourse, compared with $1.34 billion for Singapore, according to data compiled by Bloomberg.
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