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Investors feel discouraged because they have nowhere to inject money in
Finance, real estate, securities and gold investors these days have the common voice that they feel discouraged because the markets remain gloomy.
A gloomy atmosphere has been pervading the real estate market. Real estate developers have been trying to bargain away to take back capital to pay bank debts. Securities trading floors keep quiet, while securities investors make hesitant when placing orders. Meanwhile, bank depositors feel discouraged with the low interest rate of 14 percent per annum, which is not high enough to offset. Gold investors have got puzzled with the information about the tentative policy to tighten the gold monetary market.
The common thing being faced by all investors is that they do not know where to invest with their idle money.
Real estate market keeps frozen
The real estate market seemed to warm up after a series of real estate developers announced the sale of apartments at discounts. However, the information just can heat up the market on… paper. A lot of people rush to learn about the information, but very few successful transactions have been reported.
The drawing for the auction of the apartments of PetroVietnam Landmark which was organized on November 8, did not take place as planned, because only two buyers registered to attend the auction.
Those, who really have the demand for accommodation, do not hurry to make deals these days. They keep waiting and hoping that the prices would go down further in the time to come. They well understand that real estate developers need money to pay bank debts, which would force them to sell their products at low prices.
Meanwhile, secondary investors also want to sell apartments right now to stop loss. They are the people, who purchased apartments directly from real estate developers and hoped to re-sell the apartments later to buyers for profits. However, since real estate developers themselves have lowered the sale prices, secondary investors do not have the opportunities any more.
Stock market: Liquidity is problem
The shock on the real estate market has partially made the stock market, which has been gloomy for two years--become even worse. It is estimated that 30 percent of the listed companies operating in the real estate sector or have their main business fields relating to the real estate sector.
Meanwhile, analysts all have said they cannot see any signs showing that the stock market would recover in the last two months of the year.
“The pressure dong/dollar exchange rate is believed to be even harder towards the end of the year. Meanwhile, the information about the bad debts of the banking system and low liquidity of stock companies has badly affected investors’ decisions,” a report by Rong Viet Securities Company reads.
The report has also pointed out that the interest rate reductions are not sharp enough to attract the new cash flow for the stock market in November 2011.
Ocean Bank Securities Company shares the same view, saying that the stock market would continue facing difficulties in the last two months of 2011 and the first quarter of 2012, and that the VN Index would hover around 400 points by the end of the year.
Gold investors feel insecure
It is undeniable that gold remains a safe solution for investors for now. However, investors now feel insecure about the regular changes of the gold market management policies.
The deep intervention of the State Bank of Vietnam makes the price fluctuations less sharp than expected by gold investors. Meanwhile, gold price has become unpredictable.
The State Bank has allowed some banks and companies to sell gold to the market to stabilize the market. Besides, the central bank has also set up the requirements to control the lending in gold, while it has also requested commercial banks to restrict the lending to fund gold purchases.
Hong Quy
vietnamnet
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