Vietnam’s New Market Caps Prices

Thousands of prospective buyers turned out Friday for the first day of trading on Vietnam’s stock market, but most came away empty-handed as securities officials capped the two listed companies’ share prices, traders said.

The Ho Chi Minh City Securities Trading Center closed its first day on volume of 4,200 shares for its two listed companies--Refrigeration Electrical Engineering, or REE, and Cable & Telecommunications Material Joint Stock Co., or SACOM--a securities official said. The center closed after two hours of operation.

Total trade was valued at 70.4 million dong ($5,000), the exchange official said, on customary condition of anonymity.

Investors had wanted to buy 148,900 shares of REE at 16,000 dong ($1.14) and 190,600 shares of SACOM at 17,000 dong ($1.21) each, but only 1,000 shares of REE and 3,200 shares of SACOM were sold, said Pham Gia Thanh, a trader with the Investment and Development Bank of Vietnam’s Securities Co.

“Our office was packed with buyers,” Thanh said, adding that at one point about 500 people gathered, wanting to buy shares.

The Vietnam News Agency reported there were 2,500 prospective buyers, but only 12 sellers. Other potential sellers were unwilling to let go of shares when they saw the price caps.

To prevent speculation, the price of shares will be kept within a 5% band of the last closing price, the government has decreed.