A low level of liquidity on the Ho Chi Minh City Stock Exchange (HoSE) is making investors “increasingly concerned and hesitant in making investment decisions”, Vietnam News is reporting.
Key points;
- Average total value of trades made in a day is at VND 13 trillion (US$533 million);
- This is down from VND 16.56 trillion (US$679 million) in November.
- Gold prices are up and this may signal a shift from stocks to gold;
- The VN-Index’s inability to stay above 1,100 points is making investors pessimistic;
- Recent withdrawals may be linked to holidays at the end of the year; and
- Sellers are not motivated and may be waiting for clearer signals of an economic recovery.
Note that foreign investors have withdrawn over US$1 billion from the HoSE so far this year.