State intervenes in plunging stock market (26-03-2008) HA NOI — Securities regulators have taken a dramatic move to intervene in and stanch the nation's haemorrhaging stock market by more tightly controlling the value which shares can lose within a single trading day. The State Securities Commission decided yesterday to tighten the daily trading band for securities listed on both the HCM City Stock Exchange (HoSE) and with the Ha Noi Securities Trading Centre (HaSTC). Effective tomorrow, shares listed on the HoSE will be restricted in the course of a single day's trading session to within one per cent of the day's reference price, plus or minus. The new trading band replaces the previous five-per-cent trading band, after a string of recent trading sessions during which most shares on the bourse hit the floor several days running, sending the VN-Index into a nosedive. The Index closed out the day yesterday by dipping below the 500-mark. Also effective tomorrow, shares traded at … [Read more...] about State intervenes in plunging stock market
How to buy a share in the stock market
Poorly managed and overrun by investors who act like gamblers, Vietnam's stock exchanges may have been born into a country that wasn't ready for them. Is Vietnam prepared for a financial market that follows market-based principles and helps the country integrate into the global economy? Based on market developments earlier this year, the answer is no. The State Securities Commission's (SSC) decision to cut the share trading band on the stock markets to 1 percent and 2 percent on March 25 was a Band-Aid solution to the market's major fall earlier this year. No established stock market would change its rules so abruptly. In the long term, it could be hard to attract investors, especially foreign ones, to a market that does not adhere to normal principles. The strength of a stock market can be demonstrated by its management agencies' ability to establish and enforce "delicate" policies that help them achieve their desired targets fairly. The most important responsibilities … [Read more...] about Can Vietnam handle its stock market?
Experts speak about the VN-Index's fall and muse on how to resuscitate it. The VN-Index has lost 43.59 points, or 5 percent, in the week after Tet to close at 816.03 Saturday. asked several analysts for their suggestions on how to revive the market: Don't bet on stock trading HCMC Open University's Accounting-Finance-Banking Faculty Chair Dr. Nguyen Van Thuan The US economy, which is heading deeper into a recession, affects stock markets in many countries, including Vietnam. But I think the main factors affecting the local market come from within our country. The capital gains tax should be applied in a suitable way. For example, rate of the tax should be raised gradually. Raising capital through selling shares of listed companies should be monitored more closely. The economy won't develop steadily if the companies don't put the capital said through share sales into their main businesses. The fines for stock regulation violations should be heavier. The … [Read more...] about Stock market revival?
With the Ho Chi Minh Stock Exchange dropping 54 percent in value this year, Prudential Vietnam Fund Management Company's acting general director says it offers opportunities. Director Pham Ngoc Bich said that if investors did not buy heavily now, they would regret not taking advantage of the plunge in two years. A Thanh Nien interview with Bich is excerpted below. Thanh Nien: How have your fund's investors reacted to the bearish market? Pham Ngoc Bich: The market will surely bounce back. I and my fund's investors are in the market for the medium- and long-term, so its current fluctuations, which won't last long, don't make us nervous. Share prices on the market are pretty low, offering gilt-edged investment opportunities. I believe many investors will regret wasting the chance in two years if they don't start to buy now. We at Prudential don't want to miss such great opportunities, so we plan to invest in the energy, oil, agriculture and food sectors. Many … [Read more...] about Prudential chief finds value in plummeting stock market
How To Buy A Stake In Vietnamese Enterprises By Tran Thanh Tung& Nguyen Thi Phuong Chung (*) Five steps towards acquiring a stake in local enterprises Thanks to his business networks, an Indian investor managed to clinch a deal under which it would acquire a 4% stake in a local joint stock firm. The contract was signed, money was transferred into the seller’s account, the buyer’s particulars were noted and the company already supplied the shares. The transaction was, in short, all but complete. However, the company failed to touch on the issue of dividends; neither did it convene a general meeting as requested by this Indian investor. When dispute erupted and the case was referred to the Department of Planning and Investment, the deal was considered as illegal since it was not registered at this agency. Investor rights, in this case, are questionable. This scenario reflects the problems gripping foreign investors who want to purchase shares in local companies. Trouble … [Read more...] about How To Buy A Stake In Vietnamese Enterprises
Talking Shop (29-03-2007) Hot stocks drive trend to open new banks in nation The trend to start new banks as financial institutions see more and more success on the stock market have made people ask whether this is a good thing for Viet Nam. Le Duc Thuy, governor of the State Bank of Viet Nam (SBV), spoke with the media yesterday on the sidelines of a National Assembly meeting. Is it true there is a movement to form new banks while the regulations on establishing them are still being drafted? The movement to establish new banks indicates two things. First off, the banking sector is very attractive to both domestic and foreign investors. The trend shows this field has become ripe with growth and opportunities because no one puts money into a sector that does not perform well. And secondly, people are looking to make a huge profit and therefore make careless decisions when proposing these types of businesses, as people often believe bank shares are hot in the official and … [Read more...] about Hot stocks drive trend to open new banks in nation
Long-term stock market outlook positive: experts By Tu Tam - The Saigon Times Daily HCMC - The prospect of Vietnam's stock market is positive with more investors looking toward to the long term, and experts say they believe the VN-Index is poised to climb to 400-450 points by the year-end. This is evident in the recent showings of the market, which has jumped about 45% from February's low of 230 points. The trading volume hit a record high of 62.2 million shares worth over VND1.58 trillion on April 15, up 16.18% in volume and 21.83% in value. "The economy is coming in for a soft landing and that's why investors feel more comfortable about the market. The news is not good but still it's better than we feared a few months ago. At the moment investors are encouraged by the fiscal stimulus announced by the government and some currency depreciation to make exports more competitive," Mac Cana explains. Nguyen Mien Tuan, CEO of VietDragon Securities, says investors are now looking toward … [Read more...] about Long-term stock market outlook positive: experts
The financial market, especially the stock market, is developing increasingly complex as the Vietnamese and global economies have gone out of the worst slump in decades. To provide a wider outlook on the market in 2010, Vietnam Business Forum has a talk with Mr Hoang Xuan Quyen, Deputy Director of Tan Viet Securities Inc. "Policy risk" is used to describe hidden risks in macroeconomic management. How will this risk affect the Vietnamese stock market in the coming years? Macroeconomic policies such as monetary policy (interest rate, compulsory reserves, exchange rate, credit, etc) and fiscal policy (budget deficit, debt, growth stimulus, etc.), tax policies, etc. cause an all-side impact on the economy and business environment, on consumer behaviours, and private investment decisions (enterprises, households and individuals). Policy risk is an unpreventable woe in the world, not only in Vietnam. In 2010, although financial markets have come out of crisis, there are still many … [Read more...] about Stock Market in 2010: Confidence in Market Recovery
The Vietnamese Government's recent policies on macroeconomic stability and inflation control have exerted significant impacts on the stock market. Vietnam Business Forum reporter Huong Ly interviewed Mr Le Trung Dung, Senior Manager of Research & Analysis Department, Saigon - Hanoi Securities JSC (SHS), on this issue. What is your anticipation of the stock market in the coming time? Do you think there will be a new price level? Looking at what has happened on the market, I see that the stock market is undergoing a rapid-fire flow of bad information. What investors can see is a worse outlook of the market. The rise in prices of petroleum, coal, electricity and imported goods is spiralling up the consumer price index. CPI growth accelerated to 3.87 percent in the first two months, adding more difficulties to the Government's task of curbing inflation. The Government has reaffirmed its determination to rein in inflation and tighten both monetary and fiscal policies. Tight monetary … [Read more...] about “Stock Market Will Be Lacklustre at Least Next Two Months”
HCMCITY (Biz Hub) - The fish sauce market is witnessing increasingly fierce competition between many famous brand names that use both industrial and traditional methods like Unilever, Masan Consumer, Phu Quoc, and Phan Thiet. Seasoning is an essential item on a normal Vietnamese family's dining table, and with demand for it increasing by the day, the industry is growing at an 25-32 per cent a year, according to Nielsen Vietnam. Among seasonings, fish sauce is considered to have the greatest potential with consumption increasing year after year: 15,434 tonnes in 2005, 75,000 tonnes in 2016 and an expected 98,770 tonnes in 2022. According to a study by Kantar World panel, 95 per cent of Vietnamese families use fish sauce in their meals and per capita consumption is around 4 litres a year. Not surprisingly, more and more players have been entering the market. The competition first intensified when two major brands, Unilever's Phu Quoc-Knorr and Masan Consumer's Chinsu, made an entry. … [Read more...] about Masan supreme in a fiercely competitive fish sauce market