The securities market in Ha Noi is being overloaded by a dramatic increase in the number of small investors. The situation is pointing up the inability of current stock trading center infrastructures to cope with the higher transaction volumes.
|Stock hunters crowd the trading floor of Bao Viet Securities Company for stock transactions|
The trading centers located in the 24 securities companies currently associated with the Ha Noi Bourse, are often filled to capacity with hundreds of people jostling for room on the trading floor.
Many investors have complained that their orders have not been posted on the system fast enough to be put through. This, they say, when opportunities on the market come and go by the second.
Chu Van Hung, Head of the Securities Development Department of The Viet Nam Industrial and Commercial Bank Securities Company, said “the current Infrastructure of securities companies cannot keep pace with the rapid development of the stock market. Transaction centers are ill-equipped and lack qualified staff.”
“However, the most important factor having a negative impact on the trading centers right now is the information systems currently being employed. Late arrival of information, combined with sluggish reception and posting of orders are depriving many investors of good opportunities,” he added.
Mr. Hung said that while companies can afford to upgrade to a better system, they are waiting for one to be developed that is compatible with the one currently installed in the central bourse. A common system, he said, is critical to solving the problem.
Ideally, the new system would allow investors to order stocks via the Internet, freeing them from the necessity of carrying out transactions at a trading center. This would also increase the rate at which transactions could be processed, thus preventing opportunities from going unrealized.
Investing money in securities is currently the best option for local residents to invest their money. Those with large sums generally trade over-the-counter (OTC) stocks, while people with fewer resources buy listed stocks at trading centers.
Many stock investors know little about the economic forces governing the markets and organizations where they invest their money - they just follow the lead of colleagues and friends. They have also been encouraged of late, by a buoyant stock market which hasn’t dealt them any blows.
As a result, industry analysts have noticed a trend developing whereby investors, perhaps unknowingly, are taking on a greater measure of risk.