Thread: Latest news on the Dong!

Market fluctuation in face of the law of supply and demand
Unequal balance
05:36' 03/12/2006 (GMT+7)

The Vietnamese stock market is entering a new whirl with continuous and formidable fluctuation of prices. Certainly, the stock price is always affected by many factors, for example, the business performance of the enterprise, decisions of management board, the overal situation of the whole market, etc. But generally, the most basic law influencing on stock price is the supply and demand balance.

Demand to wait for opportunity
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The Vietnamese stock market is entering a new whirl with continuous and formidable fluctuation of prices. Certainly, the stock price is always affected by many factors, for example, the business performance of the enterprise, decisions of management board, the overal situation of the whole market, etc. But generally, the most basic law influencing on stock price is the supply and demand balance.

When the listing market begins to speed up, many experts have the same comment that it results from the common impact from WTO and APEC.

However, investors simply understand that the price goes up due to the sudden increase of buying power pouring into the market.

On the other hand, in their opinion, the “fever” starts from foreign organizations and some certain major investors that have pushed up the demand power on mainstay stocks of the market as REE, GMD, SAM, VNM, STB, ITA, etc. “This is the time it needs to increase”, a veteran investor comments on the price rise.

To understand him, let's have a look at the over-the-counter (OTC) market and feel how the real heat from the listing market “spreads” to OTC’s stocks price.

When VN-Index just quickly increased, buyers immediately “hunted” for stocks in the OTC market to diversify their investment portfolio and wait for opportunities from new potential stocks which were not yet recognized.

The wave on the exchanges accidentally created the “undercurrent” to the OTC market.

Who profits from the price increase?

Only within 2 weeks, the OTC stocks preparing to list boosted their average value more than 30%, such as Horuco, Tifoplast, Tapack, PV Drilling, etc. The prices of other enterprises’ stocks even increased rapidly as soon as they got new information.

But the matter is that who will get profit when OTC price goes up.

First, look at the Vietnam Securities Investment Fund (VF1), the most transparent and open in the present market. More than 50% of this fund’s portfolio is still in OTC market. VF1 claimed a profit of over VND100 billion last week, raising its total net property to nearly VND1.2 trillion compared with the oroginal establishing value of VND300 billion. Most of VF1’s profit was obtanied from the OTC market before these stocks are recognized by public and appear in the concentrating market.

As the same time, foreign funds and investment institutions also pay much attention to the auction sales only and buy in strategic stocks. However, to help OTC stock price grow, it is necessary to have demand from individual investors who can push up the price when they rummage to buy stocks. The increase of price on the exchange is therefore the best motive for general demand power of the whole market.

An expert investor on the ACB Securities Company’s floor said that Viet Nam’s stock market is very interesting as it can bring profit to all investors at the moment.

So, both institutional and private investors can get profit, the obvious profits attracting innumerous new investors. Market managers also “feel the profits” as stocks are gradually ascending and overwhelming other investing tools.

Will demand keeps stable if supply ascends?

In spite of the increasing price, everybody admits that the fact and fiction will only be obvious until the first quarter next year. Enterprises are striving to enter exchanges, which will put more supply pressure on the market.

However, thanks to the early raise of demand power, the capital that has been increasing in the market may not make the stock price degrade as quickly as worried.

The fluctuation of supply and demand everyday can show that the market in the short term is unstable; however, in the long term, the increase of buying power will be a multipurpose key for the growth of the market.

It can be thought that the early using of demand increasing to wait for the coming hot supply is challenging but potential, helping the VN-Index be able to overcome this time.

Looking back after the next 2 years, we can see where the real demand come from. However, experts are now afraid of the general heat that can make individual investors buy wrongly-estimated stocks.

(Source: SGGP)

Originally Posted by eosirl2

Some have been asking me about the feasibility of the dong....I found this article which tells better of the Vietnam's plans for the dong. Not encouraging to say the least.

i have to agree after watching the financial and economical evaluation focussed on Vietnam the other day.

this is a land with a vast potential but will only meet the longterm planners with plenty of patience and spare DONGs to stash aside and move on to others in the meantime.

certainly not for the likes i see gathered here either in this forum and elsewhere who can mainly afford and bargain around at a mere several hundred dollars for a million or two dongs a time.

for a more practical profit on a short term and with a modest payout that could even reach 3 - 4 digits comfortably, you make more friends treating them at every payout and you won't be disillusioned either with this other alternative.

not one to expect richness overnight but better than being taken for another ride and for most or for a few of you, to wait for endless months grouching at RVs and promised profits to no avail....

look at my link and overcome the same time to do some DD (not ding dongs ) and discover what you have been missing but can still see something gained in January 2007, you won't regret it but will instead take pride to be thankful you took this tip, see the following link and learn something interesting:

http://www.rolclub.com/real-investme...heir-word.html

Pat.

Originally Posted by chouchou

Hi Neno

Sorry for being so stupid but where it is wriitten that they send a Certificate.

Thanks soooo much

You request it. Just Like at safedinar with the IQD's. Are any other dealer you deal with. With out it I wouldn't deal.

For anyone of consern. I have called them and Verified it. You do have to Request it as I said before. They will send it for IQD (Iraqi Dinar) or VD (Vietnam Dong). The gentelman was very nice and said yes, just request it.

I have the Site in My Siggy Below. Rolclub is supporting them with the IQD sales. If you have no Chase Bank are dont have a chose, please consider them for your IQD are VD Purchases.

I will be using them just because of Rolclub. I do have my first 2 million coming from a member that has 2 million VD's that needs the money. But my rest will come from these guys. I will even do a order for IQD's, like I said because of Rolclub's Involvment.

Originally Posted by neno

I will be using them just because of Rolclub. I do have my first 2 million coming from a member that has 2 million VD's that needs the money.

Geez cowboy...U R getting richer by the day... Great going there ...must be those spurs tailing ya behind...hehe!!!


YB. - cheers to the smooth handling...

For dinars i have seen to many sellers. But for dong i havent seen to many that has started to sell this currency yeat.

Rc's will consider to sell Dong for its members, and others that might wish to obtain this currency.

regards
admin

That is a nice and awesome opportunity made available to the membership and with the gradual growth spinning as the Vietnamese gather their act in Asia, and we are looking within a 2-5 year span, this is one BIG Forex market to delve into.

I have just returned from Thailand. Will be flying back with access wardrobe (wife included ... ) on the next trip together for a 3-week holiday to Asia again after Christmas and yesterday, was offered an invitation to detour to Vietnam for a coupla days....hmmm, not a bad thought and maybe would get to buy first hand at local denominations, not much but just to get the feel of some notes... subject to wife liking to veer into Vietnam i.e.

When RC begins to DONG us all with the option, save your orders placed with others on Ebay or elsewhere with RC instead. Your support trading with RC will boost our Forum trading for one and position our Forex stance favourably on the other as well... benefitting your bargain buys!

Thanks to you all for your participation with ROLClub's efforts that involves ALL of you as well!

Together, ROLClub members are making a difference out there with decent and good ROIs for value!!




YB. - cheers to all on this coming Christmas




.

Hi

I have email NamMoney regarding smaller denominations but unfortunately they only stock 100K ,200K and 500K notes.

I am scare with big note.

Maybe Marek will be able to sell us smaller denominations.

Thanks

Originally Posted by Admin

For dinars i have seen to many sellers. But for dong i havent seen to many that has started to sell this currency yeat.

Rc's will consider to sell Dong for its members, and others that might wish to obtain this currency.

regards
admin

I Thought I Saw That Dinartrade Was Now Selling Dong