VN stock market: quitters outnumber newcomers

July 09, 2013 | 14:26

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There are fewer companies being added to the Vietnamese stock market than those asked or voluntarily requesting to remove their listing from the country’s two largest stock exchanges in Hanoi and Ho Chi Minh City, according to the State Securities Commission of Vietnam (SSC).

In the first half of this year, the newcomers are only equal to one third of those who have left, the SSC said in a recent report.

Specifically, while there were only seven newly-registered companies at the Hanoi and HCMC stock exchanges (HNX and HoSE), as many as 21 companies and one financial fund have had their listing canceled.

Of these, 16 institutions were forced to remove their listing since they have incurred losses that are either greater than their registered capital or were repeated three years in a row.

The remaining six issuers have canceled their listing through their own initiative in order to switch to the Unlisted Public Company Market (UPCoM).

The amount of capital mobilized via issuing shares in six months also dropped by 58 percent from the same period last year to only VND2.34 trillion (US$111.24 million), according to SSC.

Many other entities, meanwhile, have also considered leaving the stock market.

These include the Minh Phu Seafood Corp, Alphanam JSC, Ha Nam Export-Import Minerals JSC, and House Vietnam.

One of the reasons for the cancelations is that the effectiveness of mobilizing capital via issuing shares has fallen short of their expectations, despite their good business results, the companies said.

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