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Index eyes another anemic week
There are few positive signals to suggest that the stock market might recover this week, according to analysts.
Vo Hoai Chang, head of the analysis and investment department of SME Securities Co, said, "The instability of world stock markets still has an impact on foreign investors who are major investors in the Vietnamese stock market."
As to encouraging domestic investors, Directive No 03 has been changed, but the new version has done little to make it easier for investors to borrow from commercial banks to finance stock purchases. To a certain extent, the new version actually tightens this form of credit, Chang said.
Meanwhile, commercial banks were competing with the stock market for idle capital, with several raising deposit interest rates. This could further draw domestic investors away from stocks, said Chang.
He also said that the attention of the Government was more focused on battling inflation than on reinvigorating the stock market.
"These are all reasons why it will be difficult for the stock market to recover."
In the first trading week following the Tet (Lunar New Year) holidays, the VN-Index lost more than 40 points, declining daily except for a slight rise on Valentine’s Day and ending the week close to the 800-point level. Both trading value and volumes were off.
The poor performance was contrary to expert predictions that the market would rally after Tet. Signs of life stirred the market in the week prior to the holiday.
But average volumes last week were half what they were in the week before Tet, with 6.7 million shares traded for a value of VND504.6 billion.
The only good news, experts said, was that many listed companies have begun buying back shares in a move to shore up values and ease oversupply on the market. At the Ha Noi Securities Trading Centre last week, the HASTC-Index lost 8.03 points on the week. Turnover was VND238 billion on a volume of three million shares.
VNS
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