boiman
10-10-2008, 05:58 PM
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.
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.