Market comment – July 15

Bank lending curb will hurt stocks

The central bank Wednesday told commercial lenders to reduce lending to non-essential businesses in an attempt to curb credit growth amid signs that inflation may quicken through the rest of the year.

“The lending curb is hurting investors’ sentiment and overshadowing the market, which is already quite gloomy.

Investment flows into the equity market already started falling a couple of weeks ago, when there were concerns over the quickening credit growth at banks.

Even thought the VN-Index increased on Wednesday following gains in international markets, demand is still weak compared with supply, especially with tomorrow’s listing of Vietnam Bank for Industry & Trade.

Wednesday’s gain in the market isn’t very solid, as trading volume is still quite small. I would expect to see the VN-Index slip to 400 by the end of this month.”

Nguyen Quang Bao, Deputy CEO of Ban Viet Securities Co.

thanhnien, bloomberg

>   Vietinbank securities could list by end of this month (16/07/2009)

>   Sacombank to sell entire stake in Hoang Anh Gia Lai (16/07/2009)

>   Bianfishco to export frozen tra fish to US (16/07/2009)

>   TPP: Result of transaction of connected person (Ms. Ly) (16/07/2009)

>   PSC: Result of transactions of Directors, PDMR (Mr. Dung) (16/07/2009)

>   XMC: Notice of extraordinary information (16/07/2009)

>   PVA: Result of transaction of connected person (Ms. Hue) (16/07/2009)

>   21/07/2009, first trading date of Government bond QHD0919008 (16/07/2009)

>   27/07/2009, record date for bond principal & coupon payment QH060909 (16/07/2009)

>   SIC: Notice of record date for Dividend payment (24.7.2009) (16/07/2009)