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HCMC stocks remain locked in downward spiral
Ho Chi Minh City stocks retreated further Friday as the global market meltdown continued. The VN-Index of 160 shares and four closed-end funds lost 18.62 points, or 4.7 percent, to close at 379.06. With this, the index has staged a 16.2 percent decline this week.
Only eight stocks escaped Friday’s carnage, while 132 of them fell by the daily allowed limit of 5 percent.
Elsewhere, global stock markets spiraled ever deeper into the vortex as pressure mounted for world leaders to throw up a decisive wall to contain the worst financial inferno since the Great Depression.
Stock exchanges from Tokyo to London suffered more staggering losses.
London's FTSE 100 index of leading shares nosedived 10.20 percent to as low as 3,873.99 points – the first time it went below 4,000 points since July 3, 2002 – and was 7.81 percent down at about 10:45 GMT.
Frankfurt's DAX 30 also shed more than 9 percent and in Paris the CAC 40 dived 7.99 percent.
Hong Kong share prices closed down 7.2 percent, Singapore shares ended 7.34 percent lower and Japan's Nikkei-225 index closed down 9.62 percent.
Tokyo briefly halted some trading in futures and options as the Nikkei saw its largest fall since the crash of October 1987.
The Ho Chi Minh Stock Exchange’s general director, Tran Dac Sinh, said in a press briefing Thursday that though the Vietnamese market was not closely connected to international markets, it was still hit hard by the global financial recession because many foreign investment funds and banks were withdrawing from the market.
Figures from the exchange’s website showed foreign investors were net sellers since the end of last month. They again sold heavily Friday, notching up net sales of VND88.5 billion (US$5.3 million).
“Foreigners’ negative move also contributed to the market’s recent falls” Nguyen Ngoc Tuoi, CEO of the HCMC-based Kim Eng Securities Corp, said.
Many domestic investors are worried that foreign players are set to make a clean break from the Vietnamese market but CEO of investment fund VinaCapital Investment Management Ltd., Andy Ho, assured that foreigners are just cautious.
“They are restructuring their portfolios,” he said.
VinaCapital is still raising money to invest in the Vietnamese stock market, he said, adding investor sentiment remains better in Vietnam than in other markets.
“I don’t think the global financial turmoil has affected the domestic market too much,” Ban Viet Securities Corp. general director, To Hai, said.
Tran Dac Sinh said the Vietnamese stock market is strong enough to overcome this difficult period. “Investors should stay calm and think carefully before making any decision,” he said.
But Le Van Thanh Long, investment director of investment fund An Phuc, said the market remains locked in a downtrend.
“I expect the VN-Index to dive below this year’s lowest of 366 points,” he said, warning the market can plunge to 350 points next week if the global markets continue to lose ground. Long has already made several fairly accurate predictions for Thanh Nien Daily.
Despite positive news about the economy – including slowing inflation this month and a VND500 fall in gasoline prices – the market has continued to slump because investors “are losing faith in the market,” Long added.
Saigon Thuong Tin Commercial Joint-Stock Bank, the exchange’s only listed lender, was the most active stock by volume, with more than 3.5 million shares exchanging hands. The HCMC-based bank, known as Sacombank, lost VND1,000, or 4.72 percent, to close at VND20,200.
Sacombank said on the exchange’s website that electric at home appliances maker REE Corp. sold three million shares to reduce its holdings to 20,879,113 shares.
Gasoline trader Saigon Fuel Co. was the biggest gainer Friday, going up by VND1,500, or 4.35 percent, to close at VND36,000. Jewelry maker PNJ has registered to buy 400,000 shares in the gasoline trader to raise its stake to 714,770.
Light bulb manufacturer Dien Quang (DQC) was the biggest loser after falling by VND6,600, or 22 percent, to close at VND23,400, as the stock went ex-dividend.
Dien Quang said it would pay a dividend of VND500 per share.
Thanhnien
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