Investors articulate flexible trading times

The changing times are designed to boost the capital starved market’s liquidity

The Ho Chi Minh Stock Exchange (HoSE) said it would narrow the open periodical trading session times to 15 minutes, between 8:30am to 8:45am, from 8:30am to 9:00am as previously. The continuous trading, however, would be extended by an additional 30 minutes, between 8:45am to 10:30am, rather than 9:00am to 10:15am. The close periodical trading session is between 10:30am to 10:45am.

Negotiation trading would be continuous between 8:30am until 11am, rather than 10:30am to 11am, the bourse said on its website, adding that the new trading time would be applied in early September.

With this move, market observers said that HoSE was working to boost market liquidity. “Capital sources will flow better,” said Pham Duc Thang, CEO of Kenanga Vietnam Securities, adding that the extended trading time was also suitable to international standards.

Investors, however, doubted that the new trading time would be applied soon as the exact date has not been decided. “Let’s wait until the new trading time is applied to see its affects,” a retail investor said in an online stock forum.

Nguyen Hoang Chinh, another retail investor, said that the new trading times were not enough. Unlike the Hanoi Stock Exchange (HNX), the HoSE still used the open and close periodical trading sessions, targeted by speculators to stimulate shares prices.

“In addition to extended trading times, HoSE should also abolish the open and close trading sessions to prevent speculators, protecting investors,” said Chinh.

Market analysts additionally argued that rather than agreeing to extend trading times, market regulators and the HoSE should allow investors to buy and sell the same shares at a single session or on a daily basis, allow trading margins, shortening T+3 trading.

Market analysts also said the lengthening of trading times would  make investors exhausted, while the key issue of market liquidity was not fully solved.

Previously, the HoSE also planned to extend trading times into the afternoon, from 1pm to 2.30pm and starting July this year.

“We haven’t received HoSE submission asking for approval. However if we get it, the proposal needs further discussing, regarding to the T+ trading method,” said State Securities Commission spokesperson Nguyen Son. 

Currently, HoSE’s trading time is between 9am and 11am and HNX’s trading time is between 8:30am and 11am. UPCOM, a trading system for unlisted stocks, is the same as HNX but also applied afternoon trading.