The Vietnam stock market has been almost frozen for the last week with daily trading turnover dipping below one billion dong for the fourth consecutive sessions, despite the warming climate in international stock market and the announcement by the State Securities Commission that more companies would soon list on the Securities Transaction Centre (STC).
The gold price in the international market fell by US$8 to US$344 per ounce and locally, investors are anticipated to switch from gold speculating and concentrate on shares instead.
HCM City authorities gave a positive signal on July 7. Vice chairman of the people’s committee said that the city would allow shares of city-owned equitised companies to be auctioned at the STC. The news was welcomed by investors, because in the past, investors found it difficult to obtain comprehensive and accurate information of state companies set for equitisation.
Concerning share prices, in the first six months of this year the prices of almost every share nose-dived. The VN Index fell from 190 early this year to below 140 in April and is now hovering around 150. Trading is desultory mainly by small investors.
Market analysts say the bourse should be bolstered by the listing of strong companies such as Vietnam Milk Corp(Vinamilk), Saigon Beer Co and commercial banks such as Asia Commercial Bank, Sacom Bank and other strong performers to add some oomph to the market and attract both domestic and foreign investors.
Trading on July 11 was very gloomy with only 42,970 shares changing hands, worth 710 million dong. The VN Index ended at 151.22, up by just 0.02 of a point.