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Domestic investors back stock market
A significant influx of money was injected into the stock market, strengthening investor confidence, said respondents to an on-line poll on the securities market (www.vneconomy.vn) yesterday.
Nguyen Xuan Minh, general director of Viet Nam Asset Management, said that the capital mostly came from domestic investors.
Meanwhile, Nguyen Hong Nam, deputy director of Saigon Securities Inc, said that the influx of money was from people’s savings and financial institutions in the country.
Wary of transparency
"In my opinion, foreign indirect investment could not increase strongly and within a year, this source could not pump much money into our market," Nam said.
"Recently, the unexpected business performance of overseas investment funds in Viet Nam and the wariness over the transparency of local enterprises’ financial reports impacted on foreign investment in local markets," Minh said.
In addition, the impact of the global economic crisis partially minimised the significance of overseas investment capital in the local market, Minh added.
Another securities analyst, Quach Manh Hao from Thang Long Securities, said that the money piped into the stock market recently was the capital that as was withdrawn from the exchange earlier.
"In my opinion, institutional investors began returning to the market recently, as well as the capital moving from penny stocks to blue chips. It is a positive sign for the market’s development," Hao said.
He also said that the Government stimulus package was one of the reasons for the capital return to the stock exchange.
"In addition, share prices falling lower than book value helped encourage the purchase," said Trinh Thanh Can, head of Ban Viet Securities’ analysis dep-artment.
The uptrend in stock markets across the world, especially on Wall Street, also encouraged the return of capital, Can said.
"The significant capital injected into the market recently is reflecting investor confidence in the market’s development," Hao said.
Dominic Scriven, general director of Dragon Capital, said that US investors were eyeing developing countries in Asia. It meant they were eyeing the Vietnamese market. However, investors were very cautious about likely profits and the time it takes for capital disbursement, said Scriven..
Xuan Minh from Viet Nam Asset Management strongly believed that foreign investors would come back to the local market as soon as growth here is stable in the long term.
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