|
VN-Index declines 1.7% to 503.39 on inflation fears
Inflation concerns made a comeback on Thursday with a decline of 1.7 per cent in the VN-Index to 503.39 points.
Daily value was brisk with 51.6 million shares, generating a turnover of VND2.2 trillion (US$115.8 million). The southern market witnessed 168 decliners and 24 advancers, while Sacombank (STB) returned to be the heaviest-traded stock, having 2.8 million shares changed hands. In Ha Noi, the HNX-Index fell 2.70 per cent to 163.68 points, with 202 losers and 48 gainers.
Value of day trades rose to VND986.4 billion ($51.9 million) on a total of 30.9 million share traded. Kim Long Securities Company (KLS) was the most active with 5.44 million shares traded.
Foreign traders followed the market trend to become net-sellers in the south yesterday, selling off nearly 800,000 shares while they remained net-buyers in the north with a net-buy of 100,000 shares.
Dao Van Khanh, an analyst with a Ha Noi-based securities company, blamed the market drop yesterday to unfavourable moves in the March CPI rate, leading to fears of a rise in the base rate.
The lift in the March CPI rate by 0.75 per cent had refuelled inflation concerns, also causing guesses on the hiking base rate, Khanh said, noting to the latest HSBC report on the central bank's policies.
The moves of the prime rate would not depend on the increase of monthly CPI rate because the interest rate in general market was fairly high, said Khanh, adding that if the higher prime rate would trouble businesses, as well borrowers.
He said that yesterday's session reflected an information impact, rather than a technical correction. "But the 500-psychological point is quite solid to break," he said, adding that the moves of the State Bank with the prime rate late yesterday would be decisive for the market moves today.
"If the State Bank retained the prime rate, stock markets could recover tomorrow and we can see a short-term rally," he added.
vietnamnews
|
