Dec. 12 (Bloomberg) -- Hoang Thach Lan, head of the brokerage unit at Ho Chi Minh City-based MHB Securities Co., the equity investment arm of Mekong Housing Bank, comments on the local stock market.
The benchmark VN Index on the Ho Chi Minh City Stock Exchange dropped for a fifth day, losing 0.7 percent to 374.52.
On the stock market:
“The stock market will extend losses and may go below 300 by the Lunar New Year holiday in late January.” That would be the lowest since April 2009, according to Bloomberg data.
“Investors are quite negative about corporate earnings this year and in doubt about the possibility of economic improvement next year. About 80 percent of stocks on the Ho Chi Minh exchange have seen their trading volumes plunge to a few thousand shares a day.
‘‘However, both stocks and properties will rebound if the government makes any moves to support the markets, since there are many investors who still have money but just don’t know where and when to invest.’’
On securities companies:
‘‘Declines in the stock market have meant almost all securities companies face financial difficulties. More than 50 percent of securities firms will have losses this year.
‘‘There are about 50 to 60 securities companies seeking to sell stakes to overseas investors for strategic partnerships, so you will see more and more mergers and acquisitions next year.’’
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