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The Vietnam stock exchange, Asia’s hottest at the moment, resumed trading Monday after a suspension on Friday - the first in its six-year history - caused by a technical error.
The VN-Index immediately hit a new lifetime high of 724.29 points by 9.40am.
The technical glitch brought the Ho Chi Minh City Securities Trading Center (HSTC) computer system down after the market finished its first trading session Friday.
The exchange therefore decided to use the results of the first order matching on Friday as the market's closing level and cancel the last two order matching times.
HSTC reported the software transmitting data from the center to securities companies did not work, blocking the companies from getting trade results.
State Securities Commission chairman Vu Bang, who flew from Hanoi to guide reparations, said the error was handled.
The center was in the process of upgrading its system and would use a continuous order matching system by June next year, Bang said.
The bourse would build a modern system expected to start operation in early 2009 and a backup system was also being developed at the Saigon Hi-Tech Park in HCMC, he added.
Tran Dac Sinh, director of HSTC urged securities companies to undergo improvements to be in tune with the new system when in place.
Market outlook
The VN-Index soared 18.98 points, or 2.8 percent, to close at 696.12 after the first order matching Friday.
The bourse saw 30 stocks going up and 12 others falling with blue chips beating the ceiling prices by 5 percent like VNM (Vinamilk); REE (Refrigeration Electrical Engineering Co); KDC ( Kinh Do Corp.); and Sam (Samco).
The trade volume totaled 1.95 million shares worth VND116 billion (US$7.1 million), decline of VND257 billion ($15.8 million) on the previous session.
The market regulator said 16 companies were expected to debut on the HSTC from December 11 to 29, and 21 more licensed to list there but yet to announce dates.
To grasp growing profit motives of the stock exchange and as well regulatory pressures, commercial banks are rushing to set up securities trading firms.
There will be more than 20 brokerage houses by this month’ end, 12 of which are owned by banks.
The increasing interest in securities firms has been attributed to regulatory changes that takes affect in early January.
Next year, newly-established brokerage houses must have a minimum of VND170 billion ($10.6 million) in chartered capital instead of the current VND50 billion ($310,000).
The market regulator also warned banks to prepare carefully for securities trading with the market still in its infancy.
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