1:34:52 PM | 14/10/2008
Foreigners have been net sellers this month does not mean they are pulling out of Vietnam’s stock market, General Director of the Ho Chi Minh City Stock Exchange Tran Dac Sinh was cited by Vietnam News Agency as saying Friday.
The value of stocks they sold was 1.4 times higher than the value they bought, which meant that they are more cautious and selective in investment decisions, Sinh noted.
The current slump of the stock market is caused more by domestic investors and most of them are retail investors easily affected by “herd behavior,” Sinh added.
Vietnam’s economy, though unaffected by the current financial crisis, is in better shape thanks to the government’s successful efforts to curb inflation and trade deficit, Sinh added.
He also assured that the local stock market was well placed to develop despite the global crisis and told investors not to panick.
Meanwhile, analysts said that the market gloom will surely have a negative impact on proposed IPOs by state-owned companies and the market is seen as a venue to raise capital.
The State Securities Commission has recently proposed the government to approve a project to prevent crisis for sustainable development of the local market and join international efforts to minimize impacts from the U.S. financial crisis.
SSC also said that total value of investment portfolios of foreign investors in Vietnam’s stock market reach US$7 billion by the end of August this year with bonds accounting for 50 per cent. (VNS, Securities Investment)
Vietnamese
