SSC orders to reenact measures to direct the stock market as community COVID-19 cases surge

Tuesday, Feb 02, 2021 08:18

The market benchmark VN-Index ended Monday at 1,035.51 points, down 2 per cent. — VNS/VNA Photo

After a surge in new community COVID-19 cases which were reported last week, the State Securities Commission of Viet Nam (SSC) ordered industrial units to reenact measures to stabilise market activities.

In a press conference, Ta Thanh Binh, Director of Securities Market Development Department under the SSC, said that the commission directed stock exchanges, Viet Nam Securities Depository (VSD) and market participants to carry out solutions implemented last March and April to stabilise the market and respond to the pandemic.

SSC also strengthens strict inspections on market activities and controls unusual activities, supervises inside information and rumours, guarantees the market order and transparency. At the same time, SSC continues to watch political, economic, domestic market and global stock markets conditions to inform investors on time.

The State agency recommends investors to carefully assess every factor to make suitable investment decisions, closely watch listed companies’ activities to choose and invest in valuable shares with growth potential in the long-term, and avoid overreaction.

Last week, Viet Nam’s stock market witnessed five consecutive declining sessions. On Thursday, when news of community infections of COVID-19 was reported in Quang Ninh and Hai Duong provinces, the VN-Index declined 6.67 per cent, equivalent to 73.23 points, to 1,023.94 points. That amount was the biggest single-day loss of the index in 20 years since the stock market was established.

However, the market recovered with the benchmark finishing last Friday's session at 1,065.61 points, up 32.67 per cent as the Government has carried out strict measures to control the spread of COVID-19. The VN-Index ended Monday at 1,035.51 points, down 2 per cent.

There were many factors contributing to the recent falls, including investors booking profit after a strong rally, a plunge of global stock markets and panicked sentiment in the short-term regarding the pandemic, Binh said.

“Based on our observations, we saw that most share sales came from new investors, while investment organisations and foreign investors bought in shares during last Thursday's session. Especially, foreign investors were also net buyers in the last trading day of last week. On the Ho Chi Minh Stock Exchange, foreign investors bought a net value of VND 1.1 trillion,” Binh added.

Although the number of COVID-19 community cases might continue to accelerate until the pandemic is totally under control, SSC sees that the market still receives supports from positive elements including macroeconomic factors and listed companies’ internal factors.

Viet Nam has been doing well in both controlling the pandemic and developing its economy, while many countries in the world struggled with crises and recession.

According to an incomplete statistics, as of January 20, 80.7 per cent of listed companies posted positive growth in fourth quarter results, with profit after tax of listed companies and large public companies increasing 11.1 per cent year-on-year in the same period.

Many companies took advantage of chances from trade deals, such as the European-Vietnam Free Trade Agreement (EVFTA), to thrive.

SSC also believes that with success in containing the coronavirus last year, the Government can continue to control the spread of the disease and the market might soon return to normal.

As of Monday morning, Ha Noi had reported 15 COVID-19 community cases since the outbreak returned last Thursday. The city also ordered all karaoke venues, bars and discos to suspend operations from 0:00 on February 1 in a bid to contain the spread of COVID-19. VNS

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