Investors in the Vietnamese stock market viewed yesterday “Black Monday” as both VN-Index and HASTC-Index lost more than 4% of their values. This is considered what the market has responded to the Government’s tightening policy.
On the Ho Chi Minh City Stock Exchange (HOSE), the stock value of 143 companies and two investment funds fell down yesterday. VN-Index lost 33.46 points, down to 782.57 points.
On the Ha Noi Stock Trading Center, the stock value of 118 among the 127 companies went down. HASTC lost 12.38 points, down to 296.7 points.
This is viewed as a rapid reaction of the market to lots of information about the Government’s tightening policy that will be applied this March, said a market analyst.
While banks are in short of Vietnamese dong, the State Bank of Vietnam will issue bills worth more than VND20,000 billion in March and commercial banks have to buy them.
Nguyen Mien Tuan, general director of Vietnam Dragon Securities Co., said, “This policy will help control inflation but causes a shortage of money for investment. Besides the stock market, the real estate market will also be affected in the coming time.”
An opportunity for investors?
Investors’ concerns over this tightening policy have been seen through reactions in the market. Tuan from Vietnam Dragon Securities Co. said the market is now in really need of Government support in terms of policy. In addition, information from the U.S. economy will affect the Vietnamese stock market because international investment funds are present in the nation.
Nguyen Ngoc Tuoi, director of Da Nang Securities Co., said the better side of the fall of VN-Index is the index would increase back. Stock prices are being at low levels while the listed enterprises are making good profits and conducting strong growths, and this will attract investors again. This attraction will make investors to buy in while other investors are rushing to sell out.
