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After an urgent meeting to find ways to lift the ailing stock market, Vietnam’s Listed Companies Club Friday called on directors and executives to stop dumping shares.
Investors watch the market rally on the trading board at ACB Securities Corporation in HCMC Friday
The stock market, which has lost nearly a third of its value this year, was not only worrying investors but also the companies listed on the benchmark VN-Index, Listed Companies Club Deputy Chief Nguyen Bang Tam said.
The Ho Chi Minh Stock Exchange’s deputy director Le Nhi Nang said the market had fallen too sharply this year.
“Previous falls were caused by deficit of supply and demand,” he said.
“But the recent losses were caused by high inflation and a shortfall of dong.
“The benchmark index, which was expected to surge from the 817 mark after the Tet (Lunar New Year), plunged to 583 points.
“The market rallied on March 6 and 7 but we have to wait for several more trading days to see if the market is stable,” Nang said.
Nang said 20 listed firms had registered to buyback shares from now to March.
“However, the size of the buybacks was equivalent to the number of shares sold recently by directors and executives,” he said, urging big shareholders to stay calm.
The Listed Companies Club, which represents all the firms listed on the benchmark VN-Index, was formed in 2005 to work with the securities watchdog to improve the stability of the stock market.
“The listed companies should reduce the supply on the market. Boards should halt issuing additional shares,” Deputy chief Tam said.
“The listed firms should only sell stakes to strategic partners if they are in need of investment. In addition, the Listed Companies Club appeals to members to refrain from selling their holding stake.”
Tam also asked listed enterprises to announce how they plan to counter the rising petrol prices to build up investor confidence.
He said the club had asked the Ministry of Finance and the State
Securities Commission (SSC) to set policies to streamline the process for listed companies to get approval for share buybacks.
The club was also lobbying the government, the Finance Ministry and the central bank to allow foreign investors to buy stock using foreign currencies, Tam said.
