The State Securities Commission (SSC) recently issued a directive urging stock exchanges to closely monitor stocks exhibiting sharp price increases or decreases. If unusual trading activity is detected, exchanges are required to analyze the situation, assess potential risks, propose solutions, and submit a report to the SSC.
Concurrently, the SSC directed securities companies to monitor their clients' compliance with regulations. Any suspicious transactions should be reported to the relevant stock exchange and the SSC for further investigation.
These directives come as the stock market experiences significant fluctuations in indices and trading volume. The VN-Index, for instance, has swung by over 100 points in the past week, nearing 1,480 points before rebounding past 1,580.
Trading liquidity peaked at nearly 71,800 billion VND on 29/7 and then set a new record exceeding 78,100 billion VND on 5/8. On several trading days, dozens of stocks on the Ho Chi Minh City Stock Exchange (HoSE) hit their ceiling prices.
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Investors monitor market analysis at a securities company in Ho Chi Minh City. Photo: An Khuong |
Investors monitor market analysis at a securities company in Ho Chi Minh City. Photo: An Khuong
Given this volatility, the SSC also instructed securities companies to strengthen their oversight, ensuring that employees and practitioners do not entice individuals to join illegal investment forums or advisory groups. Furthermore, they are prohibited from soliciting clients to buy or sell securities based on misinformation or misleading claims.
The SSC also reminded employees and practitioners to refrain from making unsubstantiated predictions about stock price movements. They are also prohibited from guaranteeing specific returns or agreeing to share profits or losses with clients.
Additionally, the SSC emphasized the importance of strict adherence to regulations governing business operations and service provision, including margin lending and borrowing.
Experts generally agree that the stock market retains positive potential in the medium term, but short-term corrective pressures persist. Investors are advised to exercise caution during this period of turbulence, observing market trends rather than rushing into investments, to avoid chasing rallying stocks amidst ongoing corrections.
Potential investors are advised to focus on companies with sound financials, consistent growth exceeding market averages, and low valuations. Investments should be diversified and made gradually until the VN-Index shows a more sustained upward trend.
Tat Dat
