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Caution leads to more market slips
Vietnamese investors worried of a domino effect on local markets, have remained cautious amid recent international financial turmoil, leading local stock indices to slip further.
The VN-Index yesterday plummeted 4.25 percent, or 15.32 points, to 345.11, dangerously close to the psychologically important 300-point mark.
Several penny stocks – Cuu Long Fish (ACL), Chau Thoi Concrete Corporation (BT6), and Saigon Hotel Corporation (SGH) – gained during trading but had little impact on the overall market.
Investors were net sellers yesterday and big losers included Tan Tao Industrial Zone (ITA) bucking its recent winning streak.
Blue chips were the most heavily traded stocks, with 1.99 million Sacombank (STB) stocks changing hands, and both Phu My Fertilisers (DPM) and Hoa Phat Group (HPG) close to the million shares traded mark.
Total trading was 11.63 million shares worth 348.34 billion VND (20.73 million USD).
According to Le Xuan Nghia, Director of the State Bank’s Department of Banking Development Strategy, there were several reasons Vietnamese investors remained worried by recent economic crisis. Credit problems are devaluing company assets, including securities.
The market fall raised concerns of intervention by regulators, as happened mid-year when the local market lacked liquidity and recession seemed imminent.
“Intervention now is not reasonable,” said Hoang Thanh Lan, head of the analysis department of SME Securities.
“Intervention was only a band-aid fix when market liquidity fell, however liquidity is okay now and I don’t think interruption of the market will serve any purpose,” said Lan.
In Hanoi, the HASTC-Index fell 3.26 percent or 3.76 points to 111.58, with 8.71 million shares changing hands and turnover of 216.85 billion VND (12.91 million USD).
VNA
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