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Vietnam stock market still has many opportunities to move smoothly in the coming time

Wednesday - 06/06/2018 07:22
Chairman of SSC Tran Van Dung: Vietnam stock market still has many opportunities to move smoothly in the coming time. In the long term, the chairman of the SSC said that the Vietnam stock market still has many opportunities to move smoothly in the coming time. New products, new markets, and drafts of additional Securities Law are things the SSC is finally implementing.
From the new peak of 1,204.33 points on April 09, VN-Index tended to correct with the strong gains and losses, with some time to level 916 but recovering in recent sessions.
vnindex day chart 5 5 2018
VN-Index day chart

Sharing with the press, the head of the State Securities Commission - President Tran Van Dung said that this decline due to the psychological effect of profit taking investors and the stock market the monetary world and the changes expected to raise interest rates in some countries and regions.

What do you think about the Vietnam stock market in the first 5 months of 2018?

Looking back to 2017 as well as quarter I / 2018, the stock market (Vietnam) has a strong growth. Although the index has decreased over time, the fact that the stock market capitalization has increased sharply due to the large-scale listed companies, which is typical Vinhomes. Market capitalization reached VND3.846 trillion, up 9.4% compared to end of 2017, equivalent to 76.8% of GDP.

Foreigners were net sellers, but foreign capital inflows were still high at $ 615 million in April and $ 450 million in the first half of May. This proves that foreign investors remain bullish on the market and ready to disburse at the right time.

Total mobilization on the stock market in the first five months of this year was estimated at VND90 trillion, including VND57.6 trillion of government bonds and VND26,400 billion through equitization and divestment through two divisions.

What causes the stock market to drop sharply over time, sir?

The adjustment of the stock market in Vietnam takes place in the context of world market also adjusted down before the economic situation, political fluctuations. The likelihood of a US-China trade war remains, as well as concerns about the possibility of a rate hike by the US Federal Reserve in June, which prompted foreign investors to withdraw money from the markets. including Southeast Asia. Global stock markets from the US, Europe, Asia have all been down since January 2018, down from 7-10%.

I think the profit taking psychology in the stock market of Vietnam also took place at the time when the world stock market fell so the resonance effect is greater. Both foreigners and domestic investors recently tend to take profits for stocks that had a strong price increase from the beginning of the year, cautiously in new disbursements waiting for appropriate opportunities to continue investing.

In my opinion, Vietnam stock market still has many opportunities in the near future. Because macro-economic growth is good; financial market - currency, foreign exchange stable, interest rates in loans in VND tended to decrease; In terms of production and business, the profitability of listed companies remained stable. In addition, foreigners continued to net, no sign of withdrawing capital from the stock market.

In the context of stock market trading sublimation in the past, direction in the development of the stock market in the future, sir?

The SSC's priority this year is to maintain the stability and sustainability of the stock market, to develop the stock market in depth and to persevere in restructuring. In particular, the development policy of the stock market continues to focus on implementation.

Firstly, it is necessary to complete the legal framework with the focus on implementing the revised Law on Securities and submit it to the Ministry of Finance for submission to the Government, which is expected to be submitted to the National Assembly for consideration and comments in 2018 and approved. in 2019.

In the coming time, it is necessary to continue participating effectively in mobilizing capital for the state budget; Equitisation and divestment of state-owned enterprises in association with the listing and registration of transactions to take advantage of opportunities to increase the size of the accompanying market that also increases the quality of the business.

Thirdly, the SSC will continue to restructure market operations, improve and modernize infrastructure, information technology, improve the quality of operations and transactions on the stock market. One of the tasks is to unify the SEs and develop and delist the market sectors - stock market, bond market and stock market - to enhance the position of the SE in the ASEAN region.

The State Securities Commission (SSC) will also have to speed up the process of preparing new products, including CW certificates on HOSE and promising bond products on HNX this year.

The fifth task is to coordinate with the relevant units to prepare the necessary conditions for the formation of the corporate bond market, which is expected to bring the market into 2019.

Along with the development of products, markets, tasks in the next time is to further strengthen the inspection, supervision and handling of violations on the stock market.

Supervision will be carried out comprehensively in securities manipulation, disclosure and compliance activities of public companies, the operation of stock exchanges, securities trading centers, securities companies and securities companies. The company performs audits of public companies.

We think that this is a very important task to ensure fairness and transparency for the stock market, thus promoting the market for sustainable development.

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