HNX to apply 30pct trading band from May 4

Hanoi Stock Exchange (HNX)’s general director on April 25 signed Decision No 177/QD-SGDHN amending the securities transaction regulations on the northern bourse.

Similar to the amendment of the transaction regulations on UPCoM market a month ago, this amendment relates to the regulations on trading band and reference price on the northern bourse in the first trading day and the return trading day of listed shares:

* Applying the trading band of +/-30 percent against the reference price in the first trading date of newly listed share and the return trading day of shares that were suspended transactions for over 25 sessions.

* If the weighted average price level that will be used as the reference price in the following session is not determined within the first three consecutive trading sessions, the listing institution and consultant have to re-determine the reference price.

* As for newly listed share, in the first trading session, transactions will just be done under continuously matching order method.

* HNX will not adjust the conference price for cases such as enterprises issue convertible bonds, firms issue additional shares with higher offering price than the average price of the trading session prior to the ex-interest date.

Thus, currently, the price fluctuation amplitude in the first trading session on Hochiminh Stock Exchange (HOSE) is +/-20 percent and it is +/-30 percent on HNX and +/-40 percent on UPCoM floor.

This decision will take effect from May 4, 2011. – Vietbiz24

Tags: HNX, HOSE, vietnam stock, Vietnam stock market, VNindex