Last updated: 17:49 - May 26, 2007
Foreign investors driving stock market recovery http://www.nhandan.com.vn/english/business/260507/business_foreidn.htm
Foreign investors have proved to be a key reason for the recent recovery of Vietnam's stock markets after they went through a slump in March, market analysts said.
"Recently, daily transaction values by foreign investors have accounted for on average 30% of all trades which enabled the VN-Index in particular to breach the 1,100 point mark on May 22," said Nguyen Tri Trung, Brokerage Director of the Rong Viet Securities Company.
Foreign investment funds in particular are still seemingly bullish on the Vietnamese markets with larger funds such as VinaCapital and Dragon Capital announcing plans to pump more into the country's two bourses.
To date, Initial Public Offerings (IPO) of blue chip companies are proving to be the most attractive buy for foreign brokerages such as the heavily anticipated listing of leading insurance firm Bao Viet.
Coinciding with increased stock purchases from foreign investment funds, a sharp rise in the number of accounts opened by foreign individual investors have been also reported at securities companies.
Statistics released by the Ho Chi Minh City Securities Trading Centre showed that nearly 5,000 foreign accounts have been opened at its member securities companies. Most account holders were Japanese nationals, followed by the investors from the Republic of Korea, Taiwan and Singapore.
Nguyen Hong Nam, Deputy General Director of the Saigon Securities Company, said Japanese investors make up 70% of total accounts at his company. (VNA)
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