The downtrend correction of the stock market over the past one month caused certain losses to investors, especially new comers. However, unlike timid investors, who are selling off their stocks to cut losses, many strongly believe that he market will recover and they are waiting for chances…
Depreciating stocks
The VN-Index continued losing 25.65 points to close at 905.53 on April 24. Hence, after two weeks of moving around the 1,000-point benchmark, a new benchmark of 900 points seemed to take shape. Many forecast that if the VN-Index dropped to below 900 points, it would possibly move to 800 points.
FPT was the biggest loser with a depreciation of nearly VND200,000 a share compared with its peak. FPT was traded at VND434,000 each at the last call of the day. BMC also suffered consecutive falling calls to VND465,000 a share instead of VND550,000. The sharp price fall of listed shares will directly affect the IPO (initial public offering) of mouth-watered Bao Viet, Vietcombank, BIDV, Incombank, Agriseco, Habeco and Sabeco. On the listing market, the demand has fallen because many are withdrawing money for the IPO bids of giant state-rn corporations or banks.
During this time, the stock prices are still on the fall in spite of a lot of good news from listing companies like issuing of bonus stocks, paying dividends by new shares, high profits or good projects. This was attributed to the downtrend market. For example, Vinamilk (coded VNM) announced on April 23 that it obtained a combined turnover of VND1,384 billion (US$86.5 million), including VND162.387 billion (US$10 million) from financial investment revenues, and a net profit of VND323.192 billion (US$20 million) in the first quarter of 2007. However, the price of its share, VNM, continued to fall to VND161,000 on April 24 from the previous VND169,000.
Available opportunities
According to a seven-option survey on stock market trend conducted by the online newspaper
www.vneconomy.vn, showed that 33.61 per cent of over of over 5,000 participators agreed that investors will pour money into the stock market and are waiting for the uptrend. Meanwhile, 20.11 per cent said investors will not trade until the price rise.
In fact, many investors said that the market will soon recover and the attractiveness of the profit from other fields like real estate is only temporary. Moreover, the fortunes for the real estate investment were huge about one month ago, not now when the market seems saturated. Besides, many investors believed that the quick sales of securities to pour investment into other fields caused slow sales of stocks while many will not accept further losses, hence, they will continue injecting their capital into the stock market and wait for new chances.
US$24 billion in 2011?
The online ASIA Times newspaper run a story that the combined capital of the Vietnamese stock market will reach US$11 billion in the next four years after giant firms like Electricity of Vietnam (EVN) or Mekong Housing Bank (MHB) are listed.
Mr Karl D.John, CEO of TCK Group, a leading foreign firm in Vietnam, said Vietnam only ranked second in Asia in terms of stock development in 2006 after China. The growth will be higher when many state-owned giants are listed in the coming month.
Quynh Chi
Vietnamese
