VietNamNet Bridge – The prices of a lot of OTC share items drop dramatically as investors try to sell OTC shares to buy Bao Viet’s which prove to have reasonable prices and promise big profit.
On June 4, just one day after the result on Bao Viet’s share auction was announced, investors hurried to sell OTC shares to take back money for injecting in Bao Viet’s shares. The websites specializing on OTC share trading were all full of the offers on selling OTC share. There were also the offers on selling Bao Viet’s shares at VND70-80,000 (the average auctioned price of Bao Viet’s shares was VND73,910/share).
OTC shareholders now rush to sell OTC shares, including both the little known ones, and blue-chips (banks, real estate, securities and petroleum companies). This has resulted in the dramatic decreases of OTC shares. Hoang Anh – Gia Lai, Eximbank, Mai Linh, Phu My Fertiliser, Hoa Phat Hanoi, Phu Thai, Phuong Nam Bank, An Binh Bank all saw the sharp price decreases.
On the official stock market, the VN Index dropped by 15.26 points yesterday, June 4 due to the ‘effect of the Bao Viet phenomenon’.
Trinh Hoai Nam, Director of the Brokerage Division under the Saigon Securities Incorporated (SSI) said that VND70-80,000/share would not be a high price level for Bao Viet’s shares. Investors expect that Bao Viet’s shares would increase in the time to come and that explains why they are hunting for the shares.
According to Nguyen Ngoc Truong Chinh, Head of the OTC Share Brokerage Division under ACBS, it is understandable why investors are injecting money in Bao Viet’s shares. The prices of insurance companies’ shares on OTC market are all higher than VND100,000/share, while they do not own a big brand name like Bao Viet and have worse business result than Bao Viet.
Meanwhile, experts have advised investors to keep cautious with the ‘Bao Viet’s share fever’. Huy Nam, a securities expert has recalled the Phu My Fertiliser case, where investors failed to gain the expected high profit.
Analysts said that the biggest effect that the Bao Viet’s IPO could bring was that it could pull share prices down, while setting a precedent for the IPO of other companies, which will not see overly high prices.
(Source: VNNet) | 
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