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18-11-2008 07:17 PM #1
Member- Ngày tham gia
- Jul 2008
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HCMC, Hanoi slump affect OTC market
The informal over-the-counter (OTC) market has
remained frozen for the last two months due to the losses on the Ho Chi
Minh and Hanoi stock exchanges, brokers said.
Even shares of companies with good results in the year
to date, such as real estate firm Intresco, construction firm Licogi
16, and Development Investment Construction Corporation, have suffered
the same fate.
Vu Van Ha, deputy head of investment at Au Viet
Securities Company, said only brokers, some organizations and banks now
traded on the market.
“OTC shares no longer interest individual investors due to the low market liquidity,” he said.
“Moreover, individual investors now see many listed shares are cheap and easier to trade.
“As a result, even when the stock exchange rebounds, the OTC market will not react immediately.”
An experienced OTC broker named Van said she did not do a single transaction in the last month.
Only a few shares, like the Vietnam Export-Import
Commercial Joint Stock Bank (Eximbank) and the Military Bank, are
changing hands.
The OTC market in Vietnam is now unregulated. The
Hanoi Securities Trading Center is preparing to open an official OTC
market this year-end.
Once the regulated OTC market opens, it is expected to
help increase market transparency and reduce investors’ risks,
becoming, as a result, more attractive.
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