The State Securities Commission (SSC) will soon announce measures to boost share trading as the market is showing signs of recovery, the Securities Investment newspaper quoted SSC’s Head of Market Development Division Nguyen Son as saying.
To boost the market liquidity in the short-term, the SSC has just permitted exchanges to extend the trading duration by 15 minutes more in the morning, starting from June, while the trading system will be improved to prepare for trading until the afternoon, Son said.
Phan Thi Tuong Tam, HOSE’s deputy director, said the watchdog may loosen regulations this year to attract investors, including extending the trading time beyond the current two hours each weekday morning.
The commission is seeking approval from the Ministry of Finance to allow investors to open more than one trading account, and buy and sell the same stock within a trading day to boost liquidity, he confirmed.
The SSC has already allowed the Ho Chi Minh Stock Exchange (HOSE) to reduce the settlement period from T+3 to T+1 for transactions of 100,000 shares or more.
Two new trading floors will also be launched in June, including an exchange for unlisted stocks, called UPCoM, and one for government bonds, Son said.
The Vietnamese government is also seeking the permission from the national assembly to delay the income tax on capital earnings until the end of 2010.
As of May 8, foreign investors were net buyers of VND585 billion ($34.5 million) worth of local shares, focusing mainly on blue-chips such as PPC, HPG, PVF, DPM. (CafeF, Vietnam Economic Times)
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