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SSC: Bourses will not close their doors
The stock market has been plummeting. The VN Index is hovering around the bottom line. Investors should not sell stocks now or they will suffer terrific losses. Nguyen Son, Head of the Market Development Department under the State Securities Commission (SSC), talks about current developments with Vietnamese securities.
Investors have worries that the VN Index will fall to the bottom of 360 points like in June. What will SSC do to stop the continued falls?
SSC will take necessary measures to settle the problem. However, we will still keep a close watch over the market this week. If the market continues going down, we will take measures to reassure investors.
I have heard that SSC is implementing a so-called ‘anti-crisis plan’. Could you please tell us something about the plan?
We have finished drawing up the plan. We have submitted the plan to the government and Ministry of Finance, and are waiting for the plan to be approved. I cannot talk much about the plan at this moment. You may know that some foreign investment funds are trying to sell stocks. Therefore, the plan considers the control of foreign capital flow.
Investors want to know if the bourses will close their doors for a period of time.
I can say for sure that the bourses will not close their doors in the immediate time.
This means that the stock market will keep operating normally. Will SSC think of adjusting the daily trading bands, then?
A lot of securities companies have asked us about measures to support the market at this moment. However, we still cannot take action until we find out if the stock market is falling because of internal reasons or simply because of the capriciousness of investors who have been influenced by the US financial crisis.
In theory, all the measures can be used, depending on the situation of the market and the moment they are applied, including a daily trading band adjustment.
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VN Index hovering around bottom line
According to Nguyen Hoang Hai, Secretary General of the Vietnam Association of Financial Investors (VAFI), there is a big difference between the stock market falls in June and now.
In June, stock prices decreased sharply because of the big difficulties of the national economy, and of the clearance sale of stocks by credit institutions. Meanwhile, the national economy has recovered. Therefore, the stock price decreases now should be seen as the result of hasty reactions by investors to the news about the uncertainties in the world’s markets.
Hai said that the most important thing now is to reassure investors. The VN Index is hovering around the bottom line. If investors sell stocks now, they will suffer losses. |
VNN
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