VietNamNet Bridge – Financial experts have noted a stronger cash flow to the stock market in the last trading sessions of 2012. If the government successfully implements the solutions to support businesses, the stock market would prosper in 2013.

The Director of a Hanoi-based securities company said that he could see positive signals in the stock market in the latest bustling trading sessions.

Everything is now backing the stock market recovery: the government is making every effort to rescue the frozen real estate market, while the State Bank is considering loosening the lending to fund securities investment deals and easing the bank loan interest rates.

The director said that though 2013 is believed to be another difficult year of the national economy, the government’s announcement about the packages to stimulate the demand and the one percent interest rate reduction all have made investors excited.

This would lead to the higher liquidity of the most influential shares (the shares of real estate firms, banks and finance companies), which would help impulse the market development.

Besides, when businesses can get benefits from the bank loan interest rate reductions, they would be able to overcome difficulties, which would prompt investors feel more secure to pour capital into the businesses.

Sharing the same view with the director, NTH, a market analyst of a HCM City-based investment fund, has noted that the market has shown signs of getting better. Especially, if the bailout aiming to save the real estate market is launched, businesses would be able to clear inventories, put the capital flow through. All of these positive factors of the national economy would foster the stock market.

However, the analyst said since the bank restructuring process has not finished yet; there would not be big changes with bank shares. Meanwhile, the liquidity of securities companies’ shares would be better which would attract the cash flow back to the market.

Nguyen Doan Hung, Deputy Chair of the State Securities Commission, also said foreign and domestic finance institutions all believe that Vietnam’s economy would get better in the second half of 2013, which means that the stock market would bounce back again.

Securities companies to undergo major operation

According to Hung, if the inflation rate is curbed at low level, commercial banks would loosen the lending and reduce the interest rates. If so, deposits would be less attractive and the capital flow would head for other channels, including securities and real estate, rather than the banks.

Regarding the control over securities companies, Hung said the State Securities Commission (SSC) is restructuring the market and there are many things to do in 2013. One of the things is to reorganize and strengthen securities companies.

Hung said securities companies would be classified into three groups: good, average and bad ones, while the bad ones would be put under the special control by the watchdog agency.

In late 2012, SSC issued the Circular No. 165 setting up stricter requirements to impose a stricter control over the performance of securities companies.

Under the new legal document, a company would be put under the special control if it does not submit the report on its financial safety situation for the two consecutive periods, or it does make public the information about the audited or checked finance reports about which auditing firms gave negative comments or refused to give comments.

Manh Ha