VNStockNews.com - During the first seven months of this year, the stock market continued going down due to macro economy instabilities, especially the tightening monetary policy to tame inflation, Vu Thi Kim Lien, vice chair of State Securities Commission of Vietnam (SSC) said at the seminar on "Impacts of stock market on Vietnam's financial market, policy recommendations" held recently.
From early this year till July 29, the VN Index decreased 16.5 percent while the HNX Index declined 38.8 percent. The market capitalisation as of June reached 686 trillion dong, down 40 trillion dong from the end of 2010. The capitalisation against GDP also decreased to 36 percent from 39 percent in the end of 2010.
Also till the end of June, about 46 percent of listed companies had market value below the face value, 74 percent of companies had market value lower than the book value and 45 percent of listed firms had P/E lower 5x, Lien said.
The difficulties in capital mobilisation activities were attributed to the reduction of outstanding loans for non-production sector. In the first six months of this year, the total capital mobilisation via additional share issuance reached only 4.5 trillion dong, or 16 percent of the same period last year and capital mobilisation through share auctions reached 560 billion dong, or 68 percent on year.
