Fewer firms join stock market this year

The Hochiminh Stock Exchange (STC) has reported only eight newly-listed enterprises since early this year, falling sharply compared to previous years, said Tran Anh Dao, director of the listing department.

STC is screening around eight to nine listing applications, so it is likely that this year’s number of newly-listed firms will be lower than in 2011, when around 30 enterprises debuted on the exchange. HOSE saw nearly 80 newly-listed enterprises in 2010.

The Hanoi Stock Exchange reports the same situation with only eight newly-listed enterprises in the January-August period. The exchange saw 29 newcomers last year and up to 113 newly-listed enterprises in 2010.

The market is expecting the bourse debut of Bank for Investment and Development of Vietnam (BIDV) within this year.

Speaking to the Daily in July, a BIDV leader said the lender delayed its listing plan scheduled for June 26 to have more time to finalise audit data.

BIDV at this time has completed paperwork and is likely to debut on STC within this month, Dao said.

According to a securities expert, enterprises have ignored listing on the stock market as the current downturn has made the capital mobilisation channel less attractive. Many enterprises even seek approval to delist from the two local exchanges.

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Category: Stocks