Businesses s
Industrial zInvestment funds holding money and …waiting
Written by tuan on 2008/03/18 23:36
VietNamNet Bridge – The stock market recovered a little last week, but the market performance in this week and the demand of investment funds remain mysterious
The last week closed with the VN Index at 643.8 points with which investors have more reasons to hope for a brighter prospect. According to the Analysis Division under the Saigon Securities Incorporated (SSI), last week was a ‘sensitive’ period which essayed investors’ psychology. Investors seemed to calm down last week after they got paniced for a long time when witnessing the stock price slide. Tong Minh Tuan from the Analysis and Consultancy Division under IPA Investment said that the State Capital Investment Corporation (SCIC) now plays a very important role in restoring investors’ confidence. “SCIC probably has not disbursed much to buy shares, but it has helped restore investors’ confidence,” Tuan said. Investors have raised a lot of questions about SCIC’s share purchases: how many shares it has purchased? Which share items it has purchased and is going to purchase? However, Tuan said that investors should not spend time to seek the answers for the questions, while they should have confidence in the market’s recovery. “If the stock market can be stabilized even when SCIC does not purchase many shares, this should be seen as a good thing. Vice versa, it would be a very bad thing if investors believe that the stock market must be propped up by the state in all cases,” Tuan said. What will the VN Index be like this week? March 17 was the deadline for commercial banks to disburse to purchase VND20.3tril worth of compulsory bonds. Some experts fear that the event will have negative impacts on the stock market. However, Nguyen Thanh Binh, Head of the Analysis Division under VIS securities company, does not think that the bond purchases will badly influence the stock market. “VND20,300bil proves to be a big sum of money. However, I think that this will affect the real estate market more than the stock market,” Binh said. Binh, who forecast that the VN Index would reach 650 points last week, and his forecast came true, thinks that the VN Index would hover around 650 points this week. Regarding the forecasts about the stock market, the Hong Kong and Shanghai Banking Corporation (HSBC) has said that it is now the right time for investors to buy shares for long term investments. Sharing the same view with HSBC, SSI said that investors should have the long term vision and buy shares as the investors in the true sense of the word. Meanwhile, it is now not the right time for the investors who seek quick profits. What are investment funds waiting for? While some investment funds quietly purchased shares in the last time when the share prices were low, a lot of other funds had taken no action, though they announced before that they would buy shares. A question has been raised: What are the investment funds waiting for? Tuan from IPA said that Vietnam’s stock market is now waiting for the figures about the inflation rates in March and April, because this is the important factor, which can affect the State Bank of Vietnam’s monetary policy. Investors now expect that the State Bank will apply a more flexible monetary policy. Meanwhile, SSI thinks that the US economy’s performance may badly affect Vietnam’s fledgling stock market. Binh from VIS guessed that investment funds hope that individual investors’ patience will run out, which will prompt them to sell shares. If so, investment funds will be able to buy shares at lower prices. Binh said that the stock market needs more time to recover though state management agencies have been taking actions to rescue it. Therefore, it is highly probable that the market will prosper in the short term. “Though investment funds announce that they would buy shares, they still simply keep the ‘wait-and-see attitude’, hoping to buy shares at lower prices,” BInh said.
 |
| Invetors on APEC trading floor (Photo was taken at 9.30 am March 18) |
The last week closed with the VN Index at 643.8 points with which investors have more reasons to hope for a brighter prospect. According to the Analysis Division under the Saigon Securities Incorporated (SSI), last week was a ‘sensitive’ period which essayed investors’ psychology. Investors seemed to calm down last week after they got paniced for a long time when witnessing the stock price slide. Tong Minh Tuan from the Analysis and Consultancy Division under IPA Investment said that the State Capital Investment Corporation (SCIC) now plays a very important role in restoring investors’ confidence. “SCIC probably has not disbursed much to buy shares, but it has helped restore investors’ confidence,” Tuan said. Investors have raised a lot of questions about SCIC’s share purchases: how many shares it has purchased? Which share items it has purchased and is going to purchase? However, Tuan said that investors should not spend time to seek the answers for the questions, while they should have confidence in the market’s recovery. “If the stock market can be stabilized even when SCIC does not purchase many shares, this should be seen as a good thing. Vice versa, it would be a very bad thing if investors believe that the stock market must be propped up by the state in all cases,” Tuan said. What will the VN Index be like this week? March 17 was the deadline for commercial banks to disburse to purchase VND20.3tril worth of compulsory bonds. Some experts fear that the event will have negative impacts on the stock market. However, Nguyen Thanh Binh, Head of the Analysis Division under VIS securities company, does not think that the bond purchases will badly influence the stock market. “VND20,300bil proves to be a big sum of money. However, I think that this will affect the real estate market more than the stock market,” Binh said. Binh, who forecast that the VN Index would reach 650 points last week, and his forecast came true, thinks that the VN Index would hover around 650 points this week. Regarding the forecasts about the stock market, the Hong Kong and Shanghai Banking Corporation (HSBC) has said that it is now the right time for investors to buy shares for long term investments. Sharing the same view with HSBC, SSI said that investors should have the long term vision and buy shares as the investors in the true sense of the word. Meanwhile, it is now not the right time for the investors who seek quick profits. What are investment funds waiting for? While some investment funds quietly purchased shares in the last time when the share prices were low, a lot of other funds had taken no action, though they announced before that they would buy shares. A question has been raised: What are the investment funds waiting for? Tuan from IPA said that Vietnam’s stock market is now waiting for the figures about the inflation rates in March and April, because this is the important factor, which can affect the State Bank of Vietnam’s monetary policy. Investors now expect that the State Bank will apply a more flexible monetary policy. Meanwhile, SSI thinks that the US economy’s performance may badly affect Vietnam’s fledgling stock market. Binh from VIS guessed that investment funds hope that individual investors’ patience will run out, which will prompt them to sell shares. If so, investment funds will be able to buy shares at lower prices. Binh said that the stock market needs more time to recover though state management agencies have been taking actions to rescue it. Therefore, it is highly probable that the market will prosper in the short term. “Though investment funds announce that they would buy shares, they still simply keep the ‘wait-and-see attitude’, hoping to buy shares at lower prices,” BInh said.
(Source: TBKTVN)
