Broker group calls for suspension of trading

06/03/2008 -- 2:21 PM

Ha Noi (VNA) -- Securities transactions should be halted until market authorities take measures to stabilise the plunging stock market, the Viet Nam Association of Securities Businesses said on March 4 in a meeting with State Securities Commission representatives. State Securities Commission Vice Chairman Nguyen Doan Hung dismissed the suggestion out of hand, however, saying “market performance has not been so bad as to require such a solution be taken.” Ha Noi Securities Trading Centre director Tran Van Dung agreed, noting that the burden was on investors to engage in a “more careful consideration and analysis before making investment decisions at this sensitive time.” Any measures that market authorities take at this time, Dung said, should be aimed at stabilising investor sentiment and confidence. In the context of the global economy, along with the impact of bad weather, economic targets that the Government has set for this year will be difficult to reach, he said. Economic indicators remained stable and listed companies were still performing well, “so the situation is not as bad as investors think,” he said. The Viet Nam Association of Securities Businesses (VASB) in March 4’s meeting also urged the Ministry of Finance to temporarily suspend additional Government bond issues and the State Capital Investment Corporation (SCIC) to delay putting stakes in equitised State-owned companies on the market. At March 4’s meeting, investment funds also agreed to temporarily stop selling shares effective on March 5. To stabilise the securities market over the long term, the VASB also proposed a 5 trillion VND (313.3 million USD) fund be created to help shore up the market during slumps. The VASB also urged the State Securities Commission to allow securities companies to offer margin accounts and short-sale services; raise the foreign ownership ratio in public companies from 30 per cent to 49 per cent; and limit the number of new stock brokerages.-Enditem.
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