HCM City stock market remains strong, momentum to return with system upgrade

Investors look at stock prices on a laptop. HCM City stock market remains strong, momentum to return with system upgrade. — Photo vneconomy.vn

The Ho Chi Minh City stock market maintained its strong growth momentum last month.

The benchmark VN Index closed the month at 1,408.55 points, up 6.06 per cent for June and 27.6 per cent in the year to date.

Some sectors saw even sharper growth: real estate (VNENE) was up 9.03 per cent, utilities (VNUTI) gained 8.56 per cent and consumer goods (VNCONS) rose by 6.3 per cent.

Besides, liquidity continued to rise, with average trading value and volumes per session jumping to over VNĐ 23.68 trillion (US$1.03 billion) and 735.16 million shares, an increase of 7.94 per cent and 4.73 per cent over May.

In the first half of the year trading value and volume per session were VNĐ19.64 trillion ($853.74 million) and 704.06 million shares, 198.44 per cent and 106 per cent up from 2020.

On June 4 liquidity reached a record VNĐ30.73 trillion ($1.33 billion).

New trading system

Liquidity is forecast to surge once a new trading system created by FPT Corporation takes over on July 5 to help cope with the burgeoning volumes that had the old system struggling.

The system will have a capacity of 3 - 5 million transactions a day, three times higher than the old one. It also has a mechanism to allocate orders to securities firms to avoid congestion.

It is expected to remove one of the biggest hurdles to the market's momentum, strengthening the uptrend.

In the last six months a surge in orders, which went well above the limit of 900,000 a day, has been causing frequent crashes, causing frustration among investors. — VNS