The HCM City Stock Exchange will extend the continuous order matching phase of its daily trading sessions on September 13, in a bid to improve transaction volumes.
A trading session currently lasts from 8.30 to 11.00am and contains four phases: periodical order matching to determine opening prices (The first 30 minutes), continuous order matching (The subsequent 60 minutes), periodical order matching to determine closing prices (The next 30 minutes) and negotiated transactions (Final 30 minutes).
Under the adjusted system to be instituted later this month, the opening and closing sessions of periodical order matching will each be shortened to just 15 minutes each. While, trading in continuous order matching method will be lengthened to a total of 105 minutes per day.
The negotiated transactions will also occur at the beginning of the session, between 8.30 and 8:45am, instead of in the final 30 minutes as currently.
HCM City Stock Exchange spokesman Le Hai Tra said that a trial run of extended trading hours went well, ensuring good run on official operation.
The exchange has also submitted to market regulators a plan adding an afternoon trading session, Tra said, adding, "We will announce the details right after the approval."
VietinBank Securities Company Deputy Director Nguyen Tho Phung said that trading hours needed to be extended to the afternoon to match international standards.
However, he said, the exchange needed to set a reasonable division of time for each session in order to help investors keep up with worldwide news and make better investment decisions.
Extended trading sessions could help lure more foreign investors, agreed the head of research for a Ha Noi-based securities company, Nguyen Anh Quan.
"The capital cycle will only increase significantly once investors have more tools to realise profits effectively and flexibly," Quan added.