Foreign investors watch stock movement at SSI Securities. Securities trading is expected to thrive this year, riding on initial public offerings by State-owned enterprises and the operation of the first domestic exchange-traded fund. — File Photo

HCM CITY (Biz Hub) — HCM City Stock Exchange expects securities trading to thrive till this year-end, riding on initial public offerings by State-owned enterprises and the operation of the first domestic exchange-traded fund.

According to Tran Anh Dao, the bourse's Deputy Director, Viet Nam National Textile and Garment Group (Vinatex) and Viet Nam Vegetable Oils Industry Corporation (Vocarimex) would implement IPOs this month. These were expected to attract the attention of both foreign and local investors.

The first domestic exchange-traded fund ( VietFund Management VN30 ETF) , which recently received the licence for its IPO, would also help boost the market liquidity, she said.

The bourse statistics showed that the total market capitalisation on the southern bourse reached (US$46.9 billion) as of the end of the second quarter, 2.2 per cent lower than the end of the first quarter, but up 21 per cent over the end of last year.

Notably, the second quarter saw foreign investment in the HCM Stock Exchange increase from not only the first quarter but also last year's same period.

Between April and June they bought securities worth more than VND16.3 trillion (US$777.6 million) and sold VND11.2 trillion worth for net purchases of VND5.1 trillion.

This compared to VND15.9 trillion and nearly VND15 trillion in the first quarter, and 10.8 trillion and VND11 trillion a year earlier.

Their trading represented 22 per cent of the transactions on the exchange.

SSI, HSC, and ACBS were the top brokerages, accounting for 13.22, 13.13, and 6.23 per cent of the market.

According to VietstockFinance, with expectations of a recovery in the realty market, stocks of property sectors were the most heavily traded on the southern bourse in the first half of the year. FLC Group (FLC), Tan Tao Group (ITA) and Hoang Quan Corporation (HQC) were the top three with respectively 8.4 million shares, 8.1 million shares and 4.1 million shares averagely traded per session. — VNS