VietNamNet Bridge – Some individual investors have urged the
State Securities Commission (SSC) to make an urgent intervention to stop the
slide of the stock market. Meanwhile, experts believe that the market needs to
perform its way.
Nguyen Ngoc Chinh, General
Director of Sen Vang Securities Company, said that it is really alarming that
the stock index has dropped by 40 points just over the last three days.
Chinh believes that the market
has fallen into a dangerous situation and it needs the urgent intervention from
SSC. The purchasing power nearly got exhausted on August 23, which showed the
sharp fall of investors’ confidence and signaled a possible runaway of
investors from the market.
He said on Vietstock that the
watchdog agency needs to provide updated information to investors and advise
investors to keep calm in the circumstances. Investors should be informed that
the stock market is being governed by the bad news about Kien arrest, but also
backed by the good news about the good business performances of many listed
companies.
Meanwhile, President of VNDirect
Securities Company Pham Minh Huong has noted that the biggest problem of the
market now is the decreasing confidence of investors in banks and bank shares.
Therefore, she believes that what
the State should do now is to reassure investors and provide transparent
information. Meanwhile, Huong disagrees with the idea that SSC should order to
halt the operation of the stock market for some days.
“The stock market would correct
itself in accordance with the economic laws, while no need to make
administrative interventions at this moment,” she said.
Le Dang Doanh, a well-known
economist, also thinks that rushing to bargain shares away is a psychological
reaction of some investors. Therefore, he believes that the best way to protect
investors is to provide sufficient information and calm investors down.
Sharing the same view with Doanh,
former Deputy Minister of Natural Resources and the Environment Dang Hung Vo
said the stock market needs to run its way.
“It’s quite normal that the
market is influenced by the bad news, but the market should not stop operation
just because of the bad news,” he said.
Vo went on to say that the order
to halt the transactions on the stock market would do more harm than good.
Investors would feel unsafe about the liquidity, since they cannot sell stocks
once the market closes the door.
Meanwhile, Hoang Thach Lan, a
senior executive of MHB Securities, thinks that the decision of halting
operation should have been released two days ago, while such a decision would
not help much for now.
While Vietnamese got panicky
because of the dramatic stock price fall, Japanese investors still keep
optimistic about the Vietnamese stock market.
The news about Kien arrest has
appeared on all the big finance information channels such as Yahoo!Finance
Japan, Morningstar Japan, and MarketHack.
A Japanese investor, who lives in
HCM City wrote on Twitter that domestic investors have been trying to bargain
shares away, including the shares of the banks which in no way have relations
with ACB, while foreign investors have taken full advantage of the stock price
falls to buy shares in big quantities.
Imai Masayuki, a well-known
expert about Vietnam’s economy and securities, at the interview given to a
securities TV channel in Tokyo, said that Japanese investors still keep
confidence in Vietnamese stocks. He commented that the arrest of Kien is not so
serious that investors need to run away.
He also said that it is not easy
to find the wonderful opportunities to make money like in Vietnam, where the
stocks can bring high dividends and the stocks are very cheap.
Compiled by Kim Chi
Business & Investment Opportunities
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