Market comment – July 30

Market comment of July 30 is as follows:

Low short-term visibility

The markets continued to fall back as trading volumes shrunk further, although we did see some intraday attempts to lift sentiment. Weakness in the US and some media reports on possible inflationary risks in the second quarter created a sense of uncertainty amongst many investors.

Market breadth widened ever so slightly on Wednesday mainly because the number of stocks falling to the floor declined in Ho Chi Minh City. Foreigners were net buyers but their participation has been on the decline recently. And the put-through market reflected a general lack of interest with deal size shrinking on both exchanges. However blue chips were flat to mixed Thursday suggesting that the wave of selling we have seen over the last few days may be dying down. Very few of the active stocks suffered big declines although volumes have come down substantially.

We heard of some late buying in the OTC market Thursday in issues such as MB and Eximbank which may or may not spill over into the listed market today. Clearly some short term speculators may want to try to push the market up today but volumes are too low to spark a significant rally and they may lack support or follow through. And in any event Friday is often a difficult day to try to rally the market. Overall we feel short term visibility is low at the moment but will be driven by market volume and participation levels.

Ho Chi Minh City Securities Corporation (HSC)

thanhnien

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