In an attempt to capitalise the rebounding local markets, Vietcombank, Vietnam’s non state-owned bank, has decided to list a further 9.3% of its equity on the Ho Chi Minh Stock Exchange, reported The Financial Times. Vietinbank, The Vietnam Bank for Industry and Trade, and Bao Viet Insurance too have applied for listing.
The Ho Chi Minh exchange fared pathetically in 2008, losing almost 70% of its value, but has bounced back strongly, due to the government’s stimulus plan and a hope that the economy may dodge the worst of the fallout from the global financial crisis. After touching a nadir of 235 in February 2009, the index rose like a phoenix to 510 in the second week of June, up 117%.
However, several market observers are skeptical about the stock market’s rise and are not confident about its sustainability.
Kevin Snowball, Director of PXP Management in Ho Chi Minh, said: “There were 47 applications for listing in the works, a reflection of the new confidence in the market. We have seen an incredible increase in turnover: a market that was struggling to turn over $10 million a day in February is now regularly clearing $200 million a day.”
