Tiểu luận the methods to trade stocks and understanding the operations

CASE STUDY The methods to trade stocks and understanding the operations of Hanoi Stock Exchange Group 8: Bui Viet Anh Nguyen Hoang Hai Do Khanh Huyen Nguyen Thao Ly Le Thi Nhat Thao Nguyen Linh Trang (Leader) National Economic University Date: May, 16th 2016 Table of Contents I Introduction: As we know, established in 2000, Vietnam's stock market has experienced 15 years of construction and development, the achievements brought the breakthrough but not loss but also contributes to the country's economic development So, in this article, we will learn about the Hanoi stock exchange, is part of Vietnam's stock market II The operations of Hanoi Stock Market : 2|Page The history of Hanoi Stock Exchange : Hanoi Stock Exchange (HNX) was born in accordance with Decision No.01/2009/QĐ-TTg by Prime Ministeron the basis of transforming and restructuring Hanoi Securities Trading Center which was established upon Decision No 127/1998/QĐ-TTgand launched on 08/03/2005 On 24/06/2009, the HNX was inaugurated as a State-owned single - member limited liability company with the Ministry of Finance as a representative Being an organizer and regulator of the securities market, the HNX has organized share auctions, Government Bond biddings to mobilize capital for the State budget In parallel, the HNX has operated three secondary trading markets on a modern technological structure, including listed stock market, Government Bond market, and UPCoM (Unlisted Public Company Market) The optimal goal of the HNX is to operate an transparent, equitable and efficient market, develop new products, attract domestic and foreign investments, and prove itself as an important capital mobilizing channel of the economy, ensuring the interest of investors and market participants Listing requirement of HNX : a) Eligibility for trading members on HNX : Pursuant to Article 3, Trading Member Regulations of HNX attached to Decision No.323/QĐ-SGDHN dated 04 June 2010, eligible criteria for an HNX trading member are as follows: Being a securities company with broker service license; Accepted by Vietnam Securities Depository to be a deposit member; Having adequate material and technical infrastructure in securities trading: 3|Page 3.1 Order receiving, transferring system and end terminal ensuring stable connection with HNX trading system; 3.2 HNX end-of-day and real-time trading information delivery equipment for investors at each place of trading; 3.3 Trading information disclosure equipment for customers at each trading place; an electronic information page ensuring securities trading information and brokerage company information disclosure; 3.4 Professional software for trading and settlement activities meeting all technical and professional requirements specified by HNX; 3.5 Participation in creation of general data connection line according to HNX regulations; 3.6 Backup system in case of service outage (server, connection line, grid electricity, etc.) Having a competent and experienced directive board and work staff in financial, securities industries with honesty and good professional ethics; 4.1 Director has to meet legal requirements for Directors of securities companies; 4.2 Eligible personnel are promoted to trading representatives; 4.3 IT manager has bachelor in IT with year of experience in IT; 4.3 At least 02 IT officiers with certificates in security and business; 4.4 All company personnel are obliged to comply with the code of conduct Other requirements by HNX if necessary b) Data: • Stock market : Value : 80.27 Change : -0.13 Volume : 44,138,884 UPCOM : Value : 55.44 Change : -0.28 Volume : 9,227,584 • 4|Page • Bond market : Value Change Change % Clean price 104.45 -0.2920 -0.2788 Dirty price 104.48 -0.2657 -0.2537 Type of transaction and order: a) Type of transaction: -Continuous Auction ( pp giao dịch khớp lệnh liên tục) -Put through trading (pp giao dịch thoảthuận) b) Type of order: - price priority - time priority - if buy and sell orders satisfy price The excuted price is the price of the order entered into the system first Trading time and trading session: a) Trading time of listed stock market: Session Trading method Trading hour Morning Continuous order matching 9:00 am – 11:30 am session Negotiation 9:00 am – 11:30 am Break time 11:30 am – 1:00 pm 5|Page Afternoon Continuous order matching 1:00 pm – 2:30 pm session Periodical order matching for closing 2:30 pm – 2:45 pm session Negotiation b) 1:00 pm – 3:00 pm Trading time of UPCoM: Session Trading method Trading hour Morning Continuous order matching 9:00 am – 11:30 am session Negotiation 9:00 am – 11:30 am Break time Afternoon 11:30 am – 1:00 pm Continuous order matching 1:00 pm – 3:00 pm Negotiation 1:00 pm – 3:00 pm session HNX organizes trading from Monday to Friday every week (except for holidays as regulated in the Law of Labor) Price changes step and limits: The reference price of newly listed stocks on the first trading day is calculated as follows: a) Reference price was applied to newly listed stocks on the first trading day will be proposed by the listed company or the consultant company (if available) and approved by the HNX 6|Page b) For 03 consecutive trading days since the first trading day, if the average-weighted price has not been defined and used as the reference price in the next trading session, the listed company or the consultant company (if available) has to recalculate the reference price In case of stocks with over 25-session trading suspension, on the retrading day, the reference price will be decided by the HNX and approved by the State Securities Commission The requirements of information disclosure: It was announced in article 3, Decision No 250 / QD-SGDHN dated 06 January 2013 of HNX's General Director The information disclosure must be sufficient, accurate and punctual as prescribed by law Subjects disclosure must take responsibility for the information published The information disclosure must be made by the legal representative of the company or the person authorized to disclose information The legal representative of the company shall be responsible for the accuracy, the punctuality and the sufficiency of the information disclosed by the person authorized to disclose The information disclosure must be made concurrently with the report to the SSC and SE on the disclosed information contents, in particular Objects to disclose information must submit information published to listed organizations / institutions registered transactions concurrently to HNX and SSC to report Particularly founding shareholders during the transfer is limited to reporting additional Securities Depository Center Vietnam 7|Page The objects publish information must register with the HNX contact information including address, phone, fax, email electronic (email) where there is a change registration information, objects to disclosure of information on written notice less least three (03) working days prior to expected changes Date of disclosure is the date the information appears on electronic communications (hereinafter referred to as the website) and / or the Annual Report and other publications of the subject disclosure Information published on the website must clearly state the time (days, hours) disclosure Date of report on the disclosure of information is on the disclosure object data sent via e-CIMS system, email, date of sending the fax, on HNX public information received by document tracking documents sent to the HNX Where the subject disclosure report must be sent simultaneously as text and electronic data, the reporting date for the publication of information is on HNX received a full data electronics and documents The language of information disclosure on the Vietnam securities market must be Vietnamese In case the law prescribes the additional information disclosure in another language, the language of information disclosure shall include Vietnamese and the other language as prescribed The language in the disclosure of information must be clear, easy to understand and avoid misleading shareholders and the investing public The disclosure must be properly prescribed form issued Circular 52/2012 / TT-BTC, these Regulations and other relevant regulations Where the objects disclosure send information disclosed to the stock exchanges in Hanoi wrong form or lack of information on demand, HNX will not disclose information on the means disclosure of the Hanoi stock exchange 8|Page 10 In case of changing the content of information published, objects to disclosure of information and a written report explaining the HNX and SSC III The operations and index performance of Hanoi Stock Market a) The operations and index performance in 2014 Trading volume (unit: VND thousand) : Figure : + negotiation : 992,191.267 Figure : + Continuous order matching : 15,989,833,977 Figure : + Odd Lot : 1,681,815 Figure4 : + Total : 16,982,025,244 9|Page b) IPOS : + According to HNX statistics, in 2014, have recorded big fluctuation, there was 13(BAM, BII, CEO, CHP, DGC, KSK, MAS, NDF, NFC, PEN, TVC, VMI and VTH) issuers have sold their stock to the public for the first time As we know, IPO is in short of initial public offering (IPO) is the first time of stock by a private company sell to the market The total of listed stocks in HNX at the end of 2014 were 365 with the total of listed volume approximately 9.327 million stocks No Stock code BAM Name of issuers Bac A Mineral And First trading date listed volume listed value 04/11/2014 (share) 30,000,000 (VND thousand) 300,000,000 22/09/2014 57,680,000 576,800,000 Metallurgy Joint Stock Company BII Bao Thu Industrial Development and Investment Joint Stock CEO Company C.E.O Group Joint 29/09/2014 68,623,996 686,239,960 CHP Stock Company Central Hydropower 16/04/2014 125,999,511 1,259,995,110 DGC Joint Stock Company Ducgiang Chemicals & 26/08/2014 42,209,132 422,091,320 19/02/2014 23,888,000 238,880,000 15/07/2014 3,008,816 30,088,160 12/09/2014 7,853,800 78,538,000 Detergent KSK Powder Joint Stock Company Mineral Ferrous Metallergy JSC M AS NDF Danang Airports Services Joint-Stock Company Nam Dinh Foodstuff Export And Agricultural Products Processing JSC 10 | P a g e NFC Ninh Binh Phosphate 03/03/2014 10,487,551 104,875,510 25/09/2014 5,000,000 50,000,000 VIET 23/09/2014 24,096,860 24,096,860 CORPORATION VISACO MINERAL 09/10/2014 8,599,999 85,999,990 29/10/2014 5,000,000 50,000,000 Fertilizer Joint Stock 10 PEN Company Petrolimex Installation No.III Joint Stock Company 11 TVC TRI INVESTMENT MANAGEMENT 12 VMI AND INVESTMENT JOINT 13 VTH STOCK COMPANY VIET THAI ELECTRIC CABLE CORPORATION The operations and index performance in 2015: Operation and index performance in 2015 a) a b c Trading volume (unit: VND) Continous order matching: 10,372,065,021 Negotiation: 1,182,385,241 Odd lot: 1,297,806 Total:11,555,748,068 Continuous order matching Negotiation Trading volume Trading value Trading volume Trading value 10,372,065,021 122,139,549,662.2 1,182,385,241 12,896,328,563.4 b) Odd Lot Trading volume Trading value 1,297,806 19,005,086.805 IPOS: 11 | P a g e a 30 new stocks (NHP, PSE, HKB, KVC, DPS, FID, HVA, TA9, PCE, PSW, ACM, CTT, DP3, SMN, PHP, PDB, G20, PMP, PMB, VMS, DGL, MBG, PTD, SGO, TFC, PCN, PBP, TTB, VSA TEG) Stock market in 2015 did not change much compare to 2014 With 248 trading days, including 123 rally, fell 125 points, the HNX-Index lost 3.02 points total (-3.64%) compared with the end of 2014, stopped at 79.96 points at the end of trading on 31/12/2015 Stock Code NHP PSE HKB KVC FID HVA Name of issuers NHP Production Import-Export Joint Stock Company South-East PetroVietnam Fertilizer and Chemicals Joint Stock Company Ha Noi - Kinh Bac Agriculture and Food Joint Stock Company Kim Vi Inox Import Export Production Joint Stock Company Vietnam Enterprise Investment and Development Joint Stock Company Hung Viet Green Agriculture Joint Stock Company First trading date 31/12/2015 Listed volume (share) 4,955,400 Listed Value (VND) 18/03/2015 12,500,000 125,000,000,000 25/3/2015 20,000,000 200,000,000,000 14/4/2015 16,500,000 165,000,000,000 20/05/2015 10,000,000 100,000,000,000 30/07/2015 5,000,000 50,000,000,000 49,554,000,000 b- 18 stocks delisting (PFL, BTH, SD1, PTM, LM3, SSG, VNN, VPC, PPG, BVG, MAX, CTM, TSM, PID, V15, FIT, HPC PHH) 12 | P a g e Example of trading information of a listed stock of Vietin Bank: Securities Joint Stock Company Commercial Bank of Vietnam ( Securities Industry and Trade Company - VietinbankSC ) precursor is Securities Company Limited and Commercial Bank of Vietnam established under Decision No 126 / QD -HDQT - NHCT1 September 1, 2000 of the Board of management and commercial Bank of Vietnam , the initial charter Cap is 55 billion 2004 : Raise charter Cap 105 billion 2007 : Raise charter Cap 300 billion 2008 : Increase Cap charter to 500 billion 13 | P a g e Date 24/07/2009 Hanoi Stock Exchange has approved the listing decision of the Securities shares Industrial and Commercial Bank of Vietnam ( Stock Code : CTS , the number of listed shares : 78,993,400 shares ) Dated 12.31.2015 , the chartered capital is 837 303 380 000 VND was raised Trading imformation of CTS The statistics on the stock market of CTS 14 | P a g e IV Conclusion: In conclusion, 2015 was a remarkable year for Vietnam stock market when many policies, regulations governing innovative development was issued to the market in depth, closer to international practices; This is also the Vietnam stock markets continue to perform strongly restructuring The achievements of 2015 is an important prerequisite to entering 2016, Vietnam's stock market development optimistic 15 | P a g e V References: The National Assembly (2006) Law on Security Socialist Republic of - Vietnam - Hanoi Stock Exchange website: http://hnx.vn Decision No.323/QĐ-SGDHN http://thuvienphapluat.vn/vanban/Chung-khoan/Quyet-dinh-323-QD-SGDHN-2010-Quy-cheThanh-vien-Giao-dich-So-Giao-dich-chung-khoan-Ha-Noi248090.aspx - Decision No 250 / QD-SGDHN http://thuvienphapluat.vn/van-ban/Chungkhoan/Quyet-dinh-so-250-QD-SGDHN-2013-Quy-che-cong-bo-thong-tin-tai-Sogiao-dich-Chung-khoan-Ha-Noi-248102.aspx - Circular 52/2012 / TT-BTC http://thuvienphapluat.vn/van- ban/Chung-khoan/Thong-tu-52-2012-TT-BTC-huong-dan-cong-bothong-tin-tren-thi-truong-chung-khoan-137771.aspx 16 | P a g e ... have sold their stock to the public for the first time As we know, IPO is in short of initial public offering (IPO) is the first time of stock by a private company sell to the market The total of... changing the content of information published, objects to disclosure of information and a written report explaining the HNX and SSC III The operations and index performance of Hanoi Stock Market a) The. .. we will learn about the Hanoi stock exchange, is part of Vietnam''s stock market II The operations of Hanoi Stock Market : 2|Page The history of Hanoi Stock Exchange : Hanoi Stock Exchange (HNX)