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Hot money flowing to stock market
Quietly escalating continuously before the Tet holiday, the VN Index had increased by 22 percent in total before it decreased by 1.44 percent on the HCM City Stock Exchange (HOSE) on February 28.
Hundreds of millions of shares have been sold right when investors saw the first signs of recovery.
The trading session on February 28 witnessed a lot of new records made. 40 million HBB shares of Habubank were traded, which was described as an all-time record. 257 million shares were traded on the day worth 2700 billion dong on both the Hanoi and HCM City bourses.
The Hanoi Stock Exchange HNX saw 135.7 million shares traded, valued at 1020 billion dong. Meanwhile, the figures were 121.7 million shares and 1726 billion dong for HOSE, which were enough to be recognized as the highest trading volume in the last 14 months and the third biggest trading volume so far.
Investors rushed to sell shares on February 28 to take profit, the move which was anticipated some days ago, when investors rushed to buy shares.
In fact, the index decrease has also been anticipated after a period of increasing. However, one can see that the demand is relatively high. More than 2700 billion dong has been spent to collect shares at the prices which have increased by 20 percent.
Bank shares were the best sellers on the market in recent days. 40 million Habubank shares and 32 million EIB shares were sold.
Many investors are trying to sell shares to take profit, while others are still trying to collect shares when the prices remain low.
Giving up gold, deposits to jump to stock market?
While securities investors are seething with the index increases which allow them to make profits, securities companies keep cautious when predicting the market prospect.
While investors felt excited when the stock prices have been increasing in the last 10 trading sessions, some securities companies gave warnings about a “too far price increase wave.”
However, the securities companies said that the investors’ expectations on the stock market remain very high.
BSC on February 28 commented that the demand is still relatively high despite the worries that the market may turn reverse under the pressure of the big supply.
It is obvious that the cash has been flowing strongly to the stock market in recent days. In the past, the trading volume was just 200-300 billion dong per day, while the figure has jumped to 1000 billion dong per day. This shows the profuse capital being kept among people, and that the money will go to the places which can bring highest profits to the investors.
It seems that injecting money in stocks is the best choice for now. In the last several weeks, the gap between the domestic gold price and international price has been narrowed from 3-4 million dong to one million dong per tael. This spells that gold has become attractive no more. Meanwhile, analysts have reported the sale of gold in big quantities, predicting that the money from gold sale is flowing to the stock market.
The gloomy real estate market makes people believe that the cash flow is still outside the investment channel. Meanwhile, the bank deposit interest rates have decreased which has prompted many depositors to withdraw money from banks.
Depositors have been warned that the deposit interest rates would decrease further in the time to come, when the State Bank sets limits to banks’ credit growth. Especially, some banks will not be allowed to increase their outstanding loans in 2012, and others said they fear they may not use up the granted quotas because they cannot find borrowers.