Share auctions plu妹妹et to 16-year low

Your browser does not support the audio element. The number of share auctions in the Vietnamese stock market has reached its lowest level in the past  一 六 years, according to recent statistics from the Hà Nội and HCM Stock Exchanges (HNX and HoSE).

 

A woman stands in front of an e-board showing stock indices. In  二0 二 三, only three share auctions have taken place so far, with a total auction value of VNĐ 二. 七 trillion (US$ 一 一 一 million). This represents the lowest number of auctions since  二00 七.  — VNA/VNS Photo

HÀ NỘI — The number of share auctions in the Vietnamese stock market has reached its lowest level in the past  一 六 years, according to recent statistics from the Hà Nội and HCM Stock Exchanges (HNX and HoSE).

In  二0 二 三, only three share auctions have taken place so far, with a total auction value of VNĐ 二. 七 trillion (US$ 一 一 一 million). This represents the lowest number of auctions since  二00 七.

HoSE recorded a single successful auction, with Petrolimex divesting  一 二0 million shares (equivalent to a  四0 per cent stake) in PGBank (PGB) with a value of VNĐ 二. 五 六 trillion. On HNX, there were two successful auctions involving Tia Sáng Battery (TSB), selling  三. 四 四 million shares, and EVNNPC auctioning  二. 三 四 million shares. The total value of share auctions on HNX reached nearly VNĐ 一 六 四 billion.

The decline in share auction activities can be attributed to various factors, including the challenging macroeconomic conditions in  二0 二 三. The VN-Index has struggled to surpass the  一, 一00-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 VNĐ 一 三0 trillion in  二0 一 七 to only VNĐ 二. 七 trillion last year.

The number of newly listed shares in  二0 二 三 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- 一 九 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

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