Future opportunities Many international organizations point out that the world has few options left, aside from continuing to pump money to support the economy. Even when vaccines prove effective, the low-interest policy of the Central Bank will remain. The loosening of monetary policy has also been raised to a higher level, when the Central Bank of China, South Korea, and Thailand added new weapons such as the Central Bank Digital Currency (CBDC). Accordingly, the loosening of monetary policy will not stop, even when the Central Bank has been digitized. This is consistent with the 4.0 era, as well as with the method to tackle the ongoing pandemic. Even after the pandemic ends, there will be many changes in business thinking as businesses will have more plans, products and services, and allow much more flexibility. So the stock market will be strongly supported by policy as well as transformation of the economy and enterprises. Therefore, the Vietnam stock market with companies and enterprises that apply well and create business efficiency will help attract more investment capital, thereby positively affecting the stock price. When the vaccine becomes widely effective, many industries will recover again and the economy will revive and so will the stock market. In addition, the world stock market will continue to rise to new heights, which will also support Vietnam's stock market. The control of the disease, and reasonable macro-management will help in attracting Foreign Direct Investment flow. This foreign cash flow will soon lift the market along with capital flow of individual investors, F0 investors, and strong domestic organizations. Concerns of market rise If we want the stock market to maintain a growth rate after a hot rise, as in 2020 that saw a huge level of liquidity, more cash flow and a faster economic recovery is needed. As the economy goes on a recovery momentum, financial assets have increased hotly which may easily lead to the phenomenon …
Vietnams stock market
VIETNAM BUSINESS NEWS MARCH 8
Small investors oppose expanding trading lot Ho Chi Minh City Stock Exchange (HOSE)’s proposal to raise the minimum trading lot to 1,000 shares is receiving mixed opinions from market experts and investors. The proposal was initiated by newly-appointed General Director of HOSE Le Hai Tra as a solution to reduce system overloads which have troubled traders recently. A 1,000 minimum trading lot will limit the participation of small investors, while the stock market is moving towards fairness and equality, said a budding investor. “My friends and I, when joining the stock market, only have a few tens to several hundreds of millions of dong, raising the minimum trading lot to 1,000 shares will directly affect our investment capacity,” said individual investor Diep. “With expensive stocks, we may have to spend hundreds of millions of dong to buy the minimum 1,000 shares,” she said. According to Diep, the stock market has never had such a chance for growth. New cash flow into the market pushed liquidity to a record high level. However, the new proposal may not only prevent new investors from entering the market but also discourage existing investors. “The plan to raise the minimum trading lot to 1,000 shares could quickly reduce the number of orders delivered daily on HOSE. However, it will cause frustration among small investors who are directly affected by the plan as they think they are not protected,” said Do Bao Ngoc, Deputy General Director of Kien Thiet Securities Vietnam (CSI). “This plan, if in place, will affect the rapid development of the stock market under the current favourable conditions, one of which is great interest from global investors,” he said. “Under the new plan, the most affected are the investors whose trading accounts have VND1 billion or less,” said Nguyen Hoang Hai, Vice Chairman of Viet Nam Association of Financial Investors (VAFI) According to VAFI statistics, investors whose trading accounts have VND500 million or less …
Investors feel insecure about HCM City Stock Exchange congestion, move to other bourses
The chronic congestion on the Ho Chi Minh City Stock Exchange (HoSE) has caused losses for retail investors, making them insecure. Two investors look at stock prices on a laptop in HCM City. — Photo courtesy of Vietnambiz.vn Instead of congestion, and errors, only in the afternoon or near the close like previously, errors are now occurring even in the morning. For example, on March 5, just after the market opened, the security live board froze and failed to show realtime prices. Nguyen Kha, a veteran investor in HCM City, said he punched in an order to sell HBC shares on March 3 when it jumped to above VND18,500 (US$804 million), but only half his order was matched, and in the next few days had to sell at below VND18,000 since he needed money, losing VND1,000 per share. Another investor on HoSE said he has been in a constant state of insecurity recently and cannot do any other work after placing orders since one needs to watch the screen to see if the order is matched. This insecurity has caused many investors to switch to trading on the Hanoi Stock Exchange (HNX) and UPCoM, causing shares there to skyrocket in terms of both price and trading. On March 4 UPCoM saw trading worth VND1.7 trillion, twice the normal average. Drastic solutions To tackle the overload at HoSE, the State Securities Commission (SSC) said it is speeding up installation of a new trading system provided by the Korean Exchange (KRX). Last week it instructed the temporary transfer of shares from HoSE to HNX to much acclaim from both investors and analysts, but a difficult task since listed companies need to get approval from their shareholders. Besides, it could take securities companies one to two months to meet the technical changes involved in identifying the shares transferred to the HNX. Some need even six to nine months. Dr Nguyen Van Thuan of the University of Finance and Marketing told Thanh Niên (Youth) newspaper however that since this solution …