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Credit worries depress shares
Stocks experienced their third straight day of declines on the HCM City Stock Exchange yesterday, as the VN-Index slid another 1.34 per cent to end the day at 451.91.
Trading volume on the southern exchange fell by 14 per cent from Wednesday’s figure to 29.5 million shares, worth a combined VND1.1 trillion (US$61.8 million).
Market leader Sacombank (STB) generated orders for 5.5 million shares, representing 17 per cent of the volume.
On the Ha Noi Stock Exchange yesterday, the HASTC-Index also fell by 2.12 per cent to close at 148.91.
Trading value on the northern bourse was VND580.3 billion ($32.6 million), on a volume of 17.6 million shares. Activity concentrated in shares of Vinaconex Group (VCG) and Kim Long Securities (KLS), with around 2.7 million traded each.
In HCM City yesterday, overseas clients continued as net buyers of 1.2 million shares, with a net value of VND65.2 billion ($3.7 million). In the north, foreign investors were net buyers of 340,200 shares, worth a total of VND15.6 billion ($786,400).
With this week’s declines erasing the gains of this month’s rallies, the domestic markets were not yet able to establish an overall trend and were likely to stay mixed during August, according to a report from Saigonbank Berjaya Securities Co.
Worries remained about US firms’ first-half earnings and a possible "real estate and securities bubble" situation in China, the report said, while domestic credit policy was also weighing heavily on local investors.
"Deposit interest rates as well as interbank rates are still quite high, which shows that the stability of financial policies and capital flows are still in question," the company wrote.
VNDirect Securities analysts reported that money was flowing into the market from institutional investors lately, and this was expected to continue over the coming weeks. "Looking towards the year-end, with bright spots in the economy, buying in now is a good idea," they said.
Viet Nam Association of Financial Investors (VAFI) general director Nguyen Hoang Hai said that domestic corporate results were one such bright spot, particularly with earnings expected to further improve during the rest of the year.
On the unlisted public company market yesterday, stocks fell across the board with Agribank Insurance Co (ABI) the only share to manage gains by the end of the day.
The UPCoM-Index closed down 1 per cent to 78.97 points. The value of the day’s trades on the struggling market reached only VND1.5 billion ($84,300) on a volume of just 129,300 shares.
vietnamnews
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