The stock market on February 3 lost more than 40 points at times and fell to a 3-year low. The electronic board on the HCM City bourse lit with red lights as many large caps plummeted in price.

In some countries, transactions are automatically stopped if the stock prices fall more sharply than allowed. However, this policy doesn’t exist in Vietnam, so the suspension of transactions (if any) will depend on the decisions of the management agency.

“I think this scenario won’t happen because the situation is not too bad,” Dung said, advising investors to keep calm.

Vietnam’s stock market has resumed its operation since January 30 after the Tet holiday and saw the VN Index decreasing by 4 percent. Meanwhile, the Chinese market opened on February 3.

SSC believes that the Vietnamese investors have ‘overreacted’ after the information about the sharp falls of the Chinese market.

Chair of the State Securities Commission (SSC) Tran Van Dung commented that the investors have ‘overreacted’ to the nCoV outbreak, believing that the market will recover when the epidemic peaks, as it happened with SARS and H5N1.

“The Chinese market begins one hour earlier than Vietnamese,” he explained, adding that the VN Index decrease on February 3 was unavoidable.

Investors are insecure about the nCoV outbreak, despite the information that the Chinese central bank would pump 1.2 trillion yuan to rescue the economy.

In the past, the market reacted when SARS and H5N1 epidemics broke out, but it recovered immediately after some countries stated they could control the epidemic. When epidemics' reached their peak, the stock indexes recovered.

With the strong determination by the international community and the government of Vietnam, Dung believes that the epidemic will be controlled soon.

While the VN Index fell significantly on February 3, the prices of pharmacy shares increased sharply. DHG of Hau Giang Pharmacy and IMP of Imexpharm both saw the prices rising to the ceiling levels. DHG had increased by 20 percent since January 30 nd IMP by 17 percent.

On the UpCom market, DVN of Vietnam Pharmacy had increased for three sessions by February 3, or nearly 45 percent of market price. Other shares including DHJT, TRA, PME, CDP, DNM and JVC were also in high demand.

According to BIDV Securities, epidemics and securities investments are ‘long term battles’. There are still big investment opportunities in the medium and long term. In the immediate time, investors should not panic and not sell stocks at any price.

Kim Chi 

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