Both the State Securities Commission (SSC) and securities trading firms described recent frenzied sales as ‘normal’. Management will not intervene in market activities, only oversee large transactions.

An official at the SSC said that the development in the stock market in the two recent sessions is not worrying because the market was previously quite hot. In this context, the SSC will not intervene in the market, but would give it an opportunity to adjust itself. However, the official said that frenzied sale of stocks is the result of ‘psychological impact’.

He warned small investors to be careful, because at this moment, there may be people spreading news to influence market actions, or some organised investors performing transactions to corner the stock market. For that reason, the official said that SSC will tighten control of large transactions.

Judging the VN-Index in upcoming days, he said that if the index reduces, it will not drop as it did in 2001. “The Vietnamese stock market now has many considerable organisational investors and even individual investors have equipped themselves with necessary knowledge,” he added.

Pham Duc Thang, Head of the Business Department of the Securities Trading Company of the Bank for Foreign Trade of Vietnam (Vietcombank), the fall of the VN-Index over two consecutive sessions is normal. Sales orders in recent sessions have mainly been from individual investors. “We need to oversee the market more to comment more accurately,” he said.

New investors undiscouraged

Mr Hoa, a new investor at the Securities Trading Company of the Asia Commercial Bank (ACBS) said that as seeing the stock price reduce in recent days, he wanted to sell some shares, afraid of a bottomless fall. However, after several offers, he couldn’t sell the shares. He is relieved now as stock prices increase again.

Ms Ha, an investor at the Saigon Securities Trading Company (SSI), worried that a crisis similar to 2001 might arise. Though she owns valuable shares, she still wants to sell.

Mr Thang, a virgin investor from Hai Phong, said that though he has not opened an account to officially take part in the stock market, he is not scared by the price drops of late. “Only investors who lack knowledge are afraid when the market fluctuates. I plan to buy shares in VNM and REE within a few sessions,” he revealed. The standard by which he chooses his shares is the company’s stability and their financial statements must audited by reputable companies.

A stock expert in HCM City, Huy Nam said that investors should not be put off, because the recent price adjustments are a characteristic of the stock market.

Source: VNE