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VN-Index continues slide, liquidity grows markedly
The stock market continued its downward spiral yesterday, but liquidity considerably improved as some firms released positive business results.
On the HCM City Stock Exchange, trading volume reached 23.97 million shares compared to just 2 million on Wednesday. Trading value reached VND910 billion (US$55 million).
The VN-Index nearly bounced back when Phu My Fertilisers (DPM) and FPT hit ceiling prices mid-day, following early-day increases of Hoa Phat Group (HPG), Techno-Agricultural Supplying Joint Stock Co (TSC), Binh Dinh Minerals Joint Stock Co (BMC) and Sai Gon Fuel Co (SFC).
The companies all announced good business results in the second quarter.
While purchases rallies considerably, abundant sales caused the VN-Index to slump another 9.8 points, or 2.2 per cent, to close at 435.79. The market saw 12 gainers and 141 losers at the end of the day.
Foreign investors were active, buying 3.2 million shares and selling 2.3 million units. DPM was bought the most by overseas clients at 920,000 units, or 29 per cent of total foreign purchases.
At the Ha Noi Securities Trading Centre, pressure from big sales also pushed the HASTC-Index down 2.14 points or 1.49 per cent to close at 141.34.
Earlier in the day, the index had reversed its direction to reach over 144 points with the increase of some major stocks including Petroleum Technical Services Corp (PVS) and Kinh Bac Urban Development Corp (KBC).
Trading volume improved, reaching 12.9 million shares for a turnover of around VND438 billion ($26.54 million).
Bank shares were the most active yesterday, with Sacombank (STB) of the southern market seeing 5 million shares traded, while Asia Commercial Bank (ACB) of the Ha Noi market saw 1.9 million shares change hands.
Petrol price worries
The petrol price hike of 30 per cent on Monday continued to raise fears about more difficulties ahead for the stock market.
"The inflation rate has eased, but with the recent petrol price hike, inflation will continue to worry investors in the coming months," said Nguyen Thi Nghia of Hanoi.
Nguyen Van Dung, general director of Tan Viet Securities, expected the adjustment in petrol price to significantly impact many sectors and directly affect companies' business results in the last six months of the year.
"The price hike has been a shock to investors' psychology, but was not unexpected to many people," said Phan Huu Huynh, director of IBS Securities. He added that the slowing down of the stock market after three weeks of strong increases was a natural move.
Pham Thanh Thai Linh, a Bao Viet Securities analyst, told Viet Nam News on Tuesday that the price increase would only have a short-term impact, which would mostly affect August's consumer price index (CPI).
Linh said that if the price increase pushes the market way down, it would be a good opportunity for investors to buy in at reasonable prices.
World oil prices yesterday drifted around $124.4 a barrel, more than $22 below the all-time high hit two weeks ago, as US energy demand reached a tipping point, according to Reuters reports.
VNS
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