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Glum stocks push investors to bond trading
Bond trading was speeding ahead of the stock market last week, as the glum market showed no sign of getting any better.
FPT Securities estimated that the VN-Index lost an average of 1.5 per cent at each trading session last week. It closed at 384.18, a loss of 63.25 per cent compared to the same period last year.
Trading volume also stayed at a modest 1.3 million shares a day, compared to 4 million shares a day in early May.
The shift to bond trading didn't help the sluggish market, the brokerage said, saying that last Monday and Tuesday bond trading was 10 times higher than in the stock market.
"Bond trading more or less ensures profit, something that is not guaranteed in the stock market these days," the brokerage said.
No blue chips were included among the gainers last week, with no interest from investors.
"Almost all blue chips on the market have dropped by half, but local investors aren't showing any more interest with the pressure of collateral shares from commercial banks," said Nguyen Khanh Toan, a broker from the local securities firm Wall Street.
He also said that the burden of high-daily costs was driving traders away from securities trading.
Vincom (VIC) was the exception in the market last week when it closed up at nearly every session with the most consistently active shares.
The shares contributed to 20 per cent of total market capitalisation last week, gaining a total 4.23 per cent to VND74,000.
FPT Securities said that Vincom was considered a rare stock in the market with a limited number of shares offered publicly. Also helping their situation was that one member of the company bought back a huge volume of shares, raising the company's liquidity.
During the mid-year consultative group for Vietnam on June 6, leading managers of consultative organisations including the World Bank and the Asia Development Bank were enthusiastic about the Vietnamese economy and supported the Government's efforts to curb inflation.
The groups also pledged to continue funding Vietnam, although they stressed that the Government needed to be consistent with its policies, and ensure they are implemented in a direct fashion.
Toan said that the positive comments coming from the consultative would partially help reassure investors.
FPT Securities, however, didn't expect to see much improvement this week. "Until the Government announces the news on curbing inflation, the market isn't going to get much better."
The Northern HASTC-Index also lost an average of 1.7 per cent each session last week, ending at 109.87. Trading volume was about 1.67 million share a day.
This week will welcome two new members, Lilama 45.3 and Viet Nam's Leading Business Investment Fund, both listing on HCM City and Ha Noi bourses.
VNN
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