Stock market rebounds, money comes back

The stock market has been warming up after a long time of freezing, thus attracting idle capital from investors.

Analysts say that the warming stock market is attracting a big cash flow: instead of injecting money in gold and real estate, investors are now eyeing Vietnam’s stocks.

The director of a HCM City-based securities company said that real estate traders had returned to securities trading floors. The price fever in the real estate market in the last few days has helped the traders earn fat profit, which they are now injecting in stocks. As the gold price keeps skyrocketing, traders find stocks a better investment channel.

In fact, the skyrocketing gold price has helped many gold speculators make profit, and gold traders now also are heading for the stock market. Mr Tuan, the owner of a gold shop in HCM City, said that gold investors would pour money in stocks as a short-term investment channel, while waiting for other opportunities in the gold market.

The recovery of the stock market proves to be very satisfactory, and really has prompted real estate and gold return, and encouraged current securities investors. The stock market is forecast to see further surges towards the year’s end, thus becoming very attractive in the eyes of investors.

Several listing companies have reported satisfactory business results for the third quarter of the year, which shows the good health of the stock market.

Domestic investors always wait and see the moves made by foreign investors. Meanwhile, foreign investors, encouraged by the recovery of the global stock market, have purchased Vietnam’s stocks in large quantity recently. In fact, Vietnam’s stock market is not much influenced by the regional and the world’s stock markets. However, financial experts said that the influence would be clearer with the changes of the monetary policies in the world, especially the FED’s move to cut the interest rate.

Many investors expect that the VN Index will exceed the threshold of 1,100 points forecast by experts by the end of this year.

In related news, share prices have been increasing considerably over the last few days. On September 24, ACB was sold at VND144,500/share, or VND30,000 higher than earlier this month, while STB was sold at VND66,500/share. On the OTC market, Eximbank, Military Bank, Habubank and VP Bank all have seen 5-10% increases.

Commenting about the bank share price movement, experts said that the market still awaited the results of the Vietcombank’s IPO, after which, the price levels of bank shares would be set up.

Source: http://english.vietnamnet.vn/biz/2007/09/745063/