Temporarily Cooled Stock Market Awaits Green Lights

Analysts expect the Vietnamese stock market whose benchmark VnIndex has dropped to below 900 points to motor up again, citing several regulations in sight aimed at heating up this "temporarily cooled" bourse.

Investors rush up to channel their monies into real estate

Da Nang Securities Company Chief Executive Officer Nguyen Ngoc Tuoi said investors have decided to suspend their selling on the stock market and move their money into real estate market in coming with the fever there.

The Government should cool the real estate market, he suggested, before noting as well a directive being mulled to allow domestic banks to exchange USD into VND in bulk aimed at attracting foreign investors to the “temporarily cooled” stock market.

A big recent IPO from state-owned Vietcombank mobilized approximately VND1 trillion (US$62.5 million) and an upcoming IPO from Viet Nam’s largest brewer, Saigon Beer Alcohol Beverage Corp (Sabeco) is expected to garner VND9 trillion (US$562.5 million), Director of BaoViet Securities Company, Vo Huu Tuan noted.

Both increase supply while domestic demand seems down due to a recent central bank directive limiting stock-mortgaged loans and foreign demand has been impacted badly from another directive limiting room for foreign investment.

More room should be made for foreign investment, Mr.Tuan recommended, as it has enormous potential to re-heat the market.

Another positive directive awaiting approval is to allow banks to cooperate with securities companies in speeding up payments promoting investment, said Empower Securities Company Financial Investment Manager Le Thanh Tri.

Investors are to receive payment right after their orders are matched instead of waiting 3 days, Manager Tri explained.

Related article:
Stock Market Drops Below 900

By Che Han – Translated by Truong Son

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