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OTC market cools
The OTC market has been cooling down after a period of overheating as investors wait on share purchases, anticipating the results of upcoming IPOs.
The OTC market has also cooled down lately because of the uncertainty in the official stock market
No significant transactions of BVI, PVI, MKP or TIE have been reported recently, while all saw huge price increases in October. Only small offers and purchases appear on OTC market websites.
As purchasing power decreases, OTC share prices decrease slightly. HBB is now trading at VND68,500/share (the face value is VND10,000), EAB at VND63,500 and VIB VND66,500.
SHB only saw a slight increase in price from VND40,000 to VND42,500 per share in the last two weeks, despite the bank’s announcement to raise charter capital four fold and list on the Hanoi Securities Trading Centre (HASTC) by the end of this year. Meanwhile, other bank shares have seen slight price decreases, though banking is still considered a good investment channel. MB, for example, is selling at VND61,500/share instead of VND64,500 while EIB is selling at VND71,500 from VND73,000.
Nevertheless, the price of blue chips on the OTC market keeps rising. HAGL of Hoang Anh Gia Lai (specialising in wooden furniture, tourism and hotels) is trading at VND131,000/share, an increase of VND45,000 over last month. HAGL is expected to list on the bourse in March 2008. The shares of Vinaconex, Toan Thinh Phat and COTEC have also been increasing slightly as investors now tend to bank on construction companies.
Bao Viet (insurer), Song Da, Toan Thinh Phat (construction) and PetroVietnam Drilling Company are most hunted by OTC investors.
Director of a Hanoi-based securities company said that investors are currently avoiding big transactions until the IPO results of Vietcombank or Phu My Fertiliser Company, amongst others, come out. It is expected that 40-50 IPOs will take place by the end of this year.
On securities trading forums, investors advise each other to keep cautious when making transactions. Investors believe that they should not buy shares at this moment, because prices will still fluctuate after the IPOs.
According to the director, the OTC market has also cooled down lately because of the uncertainty in the official stock market.
In general, the temperature of the OTC market depends on the performance of IPOs and the official bourse, he said.
VNN
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