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VN-Index advances create worries
The VN-Index continued its gradual upward progress yesterday, sparking fears of another downturn.
The index gained 10.76 points, or 2.57 per cent, in the trading session to end at 430.05. This level is 15.21 per cent higher than on June 19, when the trading band was loosened by one percentage point on both the HCM City and Ha Noi bourses.
The number of shares traded was 10.17 million, representing a turnover of VND303.07 billion (US$18.37 million). Five share codes fell in price, contrasting with the 18 that slid on Wednesday.
"The constant advance of the VN-Index is probably thanks to money flowing from investment funds," the An Binh Securities brokers said, noting that the large share volume registered to buy could not have come from individual investors.
"However, the strong gain of the VN-Index is worrying as macro-economic factors are still unstable," the broker said. "A massive sell-off of shares could occur when share prices hit profitable thresholds."
They added that stock markets world-wide were facing difficulties due to record prices of crude oil and signs of further deterioration in the US economy.
"Vietnamese markets are part of the global economy. Investors should prepare to deal with a downturn without massive panic sales of shares as has happened before," they said.
Foreigners were net buyers yesterday, trading 199,810 shares. Saigon Securities Inc (SSI), Tan Tao Industrial Park (ITA) and Vinamilk (VNM) were their most popular purchases.
Edward Nolan, an investor with VNDirect Securities, said the Vietnamese economy was seeing positive changes and investing here was still profitable.
In Hanoi, the HASTC-Index continued its upturn, increasing by 3.29 points, or 2.77 per cent, to close at 122.07. Trading volume stood at 3.54 million shares, with a revenue of VND82.93 billion ($5.03 million).
Eight codes lost ground in the session, most of which were penny stocks like One Communications (ONE) and Long An Book and Educational Equipment (LBE).
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