VietNamNet Bridge - Volumes have soared on the stock market in the last few weeks, indicating that a large amount of money has been pouring in.

A Ho Chi Minh City-based stock broker said the turnover has risen by up to 10 times in the last month from VND2 billion in early February.
 
The February turnover was VND3.2 trillion, the second lowest in the last 12 months, but it skyrocketed to VND7.9 trillion in March.
 
The general director of a securities company said investors have doubled the money they put into their accounts in the last 10 days.
 
According to a source, one investor deposited VND400 billion (US$22.6 million) in his account in early March.
 
At the HCM Stock Exchange (HOSE) trading volume reached a record 55.23 million on April 8 when turnover was VND1.25 trillion.
 
Nguyen Hong Quang, deputy head of Tan Viet Securities Company’s Investment Analysis Department, said stocks were available at cheap rates: “The prices of many stocks have gone down to  VND20,000-25,000 from VND200,000-250,000 during the boom time.”
 
From banks
 
Ho Ngoc Bach, deputy head of Thang Long Securities Company’s Investment Analysis Department, said: “Recently, bank interest rates have fallen, and this might make investors consider other channels that can generate more profits.
 
“When the stock market shows clear signs of recovery, a huge amount of money will be withdrawn from banks to invest in it.”
                                       
For long-term investors, dividends from firms are still more attractive than bank interest.
 
With several joint stock banks planning to increase their chartered capital, more money is likely to be available for investment in the stock market.
 
On the flip side, however, outstanding loans against stocks remain rather high at many banks.
 
Hoang Thi Hoa, head of Viet Capital Securities Company’s Analysis Department, said banks have become cautious about lending against securities, but it is a source that can be tapped when the market looks up.
 
Government bonds worth VND100 billion matured in late February and VND570 billion in March. Analysts said these monies have flowed into the stock market since other investment channels remain unattractive.
 
Pham Linh, general director of Vietnam International Securities Company, said using personal funds to invest in stocks would mean stability in the market.
 
“If the funds come from people’s savings, it will create a sound basis for the securities market in future.
 
“However, the recent surge in trading volume raises the question if there has been knee-jerk investment or investors borrowed to buy stocks.”

VietNamNet/SGGP

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