Groundhog Day in Vietnam

Most of you are probably familiar with the movie Groundhog Day where Bill Murray plays the part of a local weather forecaster who wakes up each morning to find that he keeps reliving the same bad day over and over again.  That's exactly what it must feel like to be an investor in Vietnam right now.  In addition to being down 60% year to date, the index hasn't had an up day since April (25 consecutive down days).  That's right -- April!  Over that time span, the benchmark index has declined by 29%.  Investors in Vietnam are probably longing for the days pre-2002, when the exchange only opened every other day.

Comments

[fxinot:]

As one that considered risking a modest sum in VTOPF but did not because it is impossible to get decent info on that fund or the companies that are its holdings, I am not surprised that folks are bailing. More light needs to shine on Viet Nam's entire market structure before putting your money on the line.

2008 Jun 12 10:11 AM

[John Pseudonym:]

Looks like a decent rally is due if you play by the charts:)

2008 Jun 12 12:32 PM

[Richard Whitey:]

The Vietnamese government instituted a policy that the market could not move by more than 1% in any day. This was to prevent a crash, since the market was already down almost 50%.
The effect has been to prolong the decline in terms of time, so the market declines 1%, no one else can sell and it is time to go home. Consequently, consecutive down days perpetually.

2008 Jun 16 09:26 AM

[User 225306:]

hey, folks. It is now up again amid the fears of slumping Wall Street and other key Asian markets. Let's wait n see. Good to know, guys!

2008 Jul 12 02:08 AM

[UserThunder...:]

Very thoughtful conversation on this complex market.

Mar 02 01:21 PM