Tuesday, 7 December 2010

Vietnam: Call to punish speculators who unsettle domestic stock markets

Last update 04/12/2010 02:49:49 PM (GMT+7)

Call to punish speculators who unsettle domestic stock markets
VietNamNet Bridge – Strict punishment was necessary to stop speculation, illegal price rises and to prevent deliberate rumours having a negative impact on domestic markets.

This was one of the suggestions made at an online meeting yesterday, Dec 3, chaired by the deputy Prime Minister, Hoang Trung Hai.

According to ministries and agencies, gold and dollar price hikes are often attributed to the increased efforts by domestic speculators.

Hai required the Ministries of Industry and Trade , and Finance to review and supplement regulations to handle any acts of speculation, price increase and trade fraud.

Inspections were also needed to deal with any unusual phenomenon on the share and gold markets.
Hai said the media should help disseminate State policies on trading to help prevent rumours.

Plenty of supply

According to the Ministry of Industry and Trade, from now to the end of January there should be plenty of essential commodities.

In Ha Noi and HCM City, a series of price stabilisation programmes have been conducted with financial support from the State.

Deputy Minister of Agriculture and Rural Development Bui Ba Bong said there would be no pressure on the supply of rice as harvest time was near and businesses had plenty of reserves.

* Buyers continue to gain confidence

Positive entiment caused investors to pump money into the stock market pushing 300 shares to their ceilings in both HCM City and Ha Noi yesterday, Dec 3.

The VN Index continued its rise, up 1.51 per cent to close at 464.35 yesterday.

The trading volume was 71.9 million shares valued at VND1.55 trillion (US$77.5 million).

"The 460-466 mark offered strong resistance during the past four months and a mid-term uptrend is likely if the VN-index surpasses it because trading volumes have increased strongly against last month's average," said FPT Securities Co analyst Nguyen Minh Quan.

Volume ranged from 45-70 million shares during the past four days against about 30-35 million last month.
Among the 233 advancers, securities, property and rubber shares were hottest.

They included Sai Gon Securities Incorporate (SSI), HCM City Securities (HCM), Tan Tao Industrial Zone (ITA), Investment Construction (DIC), Kinh Bac Urban Development (KBC), Da Nang Rubber (DRC) and Sao Vang Rubber (SRC).

In Ha Noi, the HN-Index volume climbed to 61.6 million and a total value of VND1.18 trillion.

The index rose strongly by 4.2 per cent to close at 116.6. Securities and property shares were the hottest.

Nguyen Quang Minh, a research analyst for vietstock.vn, said investors seemed to have remembered the lesson of 2008 that when interest rates increased sharply the stock market fell to the bottom.

The market's gain reflected the activities of bottom catchers. When the stock market dropped strongly, foreign investors bought shares to bail out the market, partly helping stabilise the sentiments of domestic investors, he said.

VietNamNet/Viet Nam News


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