There are several thousand share items being traded on the OTC market, much higher than the number of 250 listed share items on the official bourse. Many OTC share items have a high capitalisation value and are not inferior to blue chips on the official market.

Tran Thu Van, OTC securities broker at Nguyen Cong Tru securities market in district 1, HCM City, said that investors on the official bourse could trade stocks with several tens of million VND, while they should have several hundreds of million VND to trade on the OTC market. Therefore, the investors on the OTC market really expect the market to warm up again.

According to the Brokerage Director of a securities company, as the market has been cold for the last four months, a huge sum of investors’ capital has been buried in OTC shares. Dang Phuc Duy, an investor from T. joint venture, who now holds more than 1,000 Eximbank shares, 4,000 EAB and 20,000 Mai Linh, proves to be very impatient, saying that the OTC price increases cannot follow the increases of listing shares.

Securities analyst Tran Ngoc Nam said that since the second half of September, the prices of banking, real estate and securities companies’ shares had increased by 20%, but were still 40-50% lower than that of the ‘golden age’.

The prices of securities companies’ shares have seen the biggest increases so far as investors believe that the bustling market will bring fat profit to securities companies. Though the stock market fell into hibernation, securities companies, banks and real estate companies still made big profit, and that explains why their shares remain attractive in the eyes of investors.

Tran Vu Hai, an investor on ACBS trading floor in HCM City, said that he owned 2,000 shares of Military Bank, Orient Bank and EAB, and believed that the OTC would increase sharply in prices, if the official bourse kept warm for some more trading sessions.  “The price will rise by 20% in November,” Mr Hai said.

Share items which once were sold by investors, like Phu My Fertiliser, Bao Viet insurance, have also bounced back in both price and demand, helping make the OTC market more bustling.

Vietcombank has not made IPO yet, but investors believe the selling price will be 20 times higher than the face value. Investors think that Vietcombank’s share price, if high, will help push the prices of other share items up.

Nevertheless, other share items still aren’t selling well. Analysts say that only 30 OTC share items can be easily traded at this moment, including shares of seafood, transport, coffee companies. However, the prices of the shares are just equal to 60-70% of that seen in March and April.

It is too early to say if the OTC market will heat up as it was in the golden age, but analysts said that OTC investors, who have buried several billion VND in stocks, now could see the light at the end of the tunnel.

Source:  Tienphong.