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Will Vietnam be the next market to decline? |
The global stock markets have seen a dramatic fall in the last few days. Will Vietnam be the next market to decline?
Only on leaving the securities trading floors yesterday morning, investors were dazed by the news on the falls of the big stock markets in the world, including the US and China. And the biggest worry of Vietnamese investors now is that Vietnam’s stock market will also see many sell orders as well.
The VN Index yesterday saw a big drop after increasing sharply in the first two trading sessions by 29.67 points to 1,137.69 points.
Experts said that the fall in Vietnam’s stock market was a normal phenomenon, while the fall in the world’s stock markets has not shown any direct impacts.
“I think it is too early to attribute the decreases in the stock market yesterday morning to the global decreases. I think that not all Vietnamese investors could update information (about the global markets) and make quick reactions in such a short time,” an expert said.
The expert added that Vietnam’s stock market is overly hot at this moment and share prices, sooner or later, will decrease to return to their actual values.
A researcher from an US-based financial research institution, who asked to be not named, had a quick talk with the press about if there is the domino effect with the Vietnam’s stock market. He is nearly completing the survey comparing the financial markets of Vietnam and China.
He said that the fall in the stock market yesterday morning showed a certain impact of the global decreases. “Most of Vietnamese investors now make investment deals by feelings and based on rumours. Therefore, the information about the sharp decreases in the world’s markets would have big impacts on them,” he said.
The expert pointed out that there are similarities of the Vietnamese and Chinese stock markets. “Once China applies a certain policy for its stock market, the same policy will be applied later in Vietnam,” he said.
When asked if the Vietnam has it independence from other stock markets and the independence can help prevent from domino effects, the expert said that Vietnam’s stock market is too small to be independent. He stressed that the fall in the Chinese stock market should be seen as a warning for Vietnam.
A foreign investor said: “I feel that in the last time, the state management authorities want to make some adjustment on the stock market since the market is too hot. However, the problem is that the watchdog cannot make interference with administrative measures. Therefore, the domino effect should be seen as a necessary impact at this moment."
Meanwhile, a lot of investors, while talking to reporters, said that they did not hear anything about the falls in the US and Chinese stock markets. Most of Vietnamese securities investors have never heard the words “bubble” or “crack”.
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