Rumors Blamed for Deepening Stock Market: IMF Chief Rep

Chief Representative of the International Monetary Fund (IMF) Ben Bingham noted at the unofficial CG Meeting that the lack of timely and exact economic and financial datum in Vietnam has been mainly resulted in unstable psychology of investors over the past 12 months and plunge the stock market

 

Due to information shortage, domestic and foreign economic analyses surely have to base on rumors and speculation, the Securities Investment newspaper reported citing Ben Bingham as saying.

 

He said that Vietnam must publicize timely economic information and datum to reduce the current speculation and help promote more precise analyses on the local economic prospect.

 

In May, the stock market kept falling freely with many shares plunging to below par value. Analysts said the loss of confidence among securities investors has pulled the market to fall further.

 

The lack of official and timely information from listed firms made investors feel unsecured and hesitant. Therefore, the stock market has still plunged for consecutive several months although enterprises reported good performance, the newspaper said.

 

Many investors and some investment funds complained that corporate information via prospectus or annual shareholders' meeting was not updated to match with the latest situation of the market and performance of enterprises.

 

Ben Bingham noted the Vietnamese government needs to counter with rumors on weakening economic indexes that are affecting investors' psychology. He also called on the government to ensure the timely and transparent provision of key economic and financial statistics.

 

Donors at the unofficial CG meeting still pledged to support Vietnam amid the situation of unstable and difficult world and local marco economy.

 

Vietnam’s shares index closed up 0.57 per cent at 372.68 points for the second day with 9.9 million shares valued at VND354.8 billion Friday with foreign buying soaring 30 per cent, according to VTV. (Securities Investment)