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Vietnam’s stock market well-placed to develop: official
Vietnam’s stock market is well-placed to develop despite the global crisis, Ho Chi Minh Stock Exchange General Director Tran Dac Sinh assured the press on Oct. 9.
Sinh said the Vietnamese economy, though not unaffected by the ongoing global financial crisis, was in better shape thanks to the Government’s successful efforts to control inflation and trade deficit. As a result, the country was seen as an alternative venue for investment.
He also told investors not to panic, causing unnecessary effects to the market.
According to Sinh, that foreign investors have been net sellers this month does not mean they are pulling out of the Vietnamese stock market.
The value of stock they sold was 1.4 times the value of their buying, Sinh said, adding this merely meant they were more cautious and selective in making investment decisions.
The recent slump in the VN-Index was caused more by domestic investors, most of them retail investors affected by “herd” behaviour. The VN-Index fell to 397.68 points on Oct. 9 from 456.7 on Sept. 30.
Analysts said the market gloom would surely have negative impact on proposed IPOs by State-owned companies and, indeed, the stock market’s role as an avenue to raise capital.
Andy Ho from the VinaCapital Investment Fund said about 80 percent of foreign investment funds in Vietnam were closed fund, only investing in the country, so very a few of investors withdrew capital due to the crisis.
He expressed his hope that in six months or 1 year, the capital expenditure and loan fees in Vietnam will be reduced, facilitating business recovery and development.
VNA
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