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Local investors eye international markets as VN-Index keeps falling
Local investors continue to track fluctuations in regional and international markets to assess how to handle their securities investments domestically.
Asian stocks fell to a 4-year low yesterday, caused by dreary corporate earnings, growing fears of a global credit crisis and Japanese exports falling short of targets, according to Bloomberg.
A series of market indices like Japan's Nikkei, Hong Kong's Hangsheng, or Shanghai's SCI tumbled significantly.
Viet Nam's VN-Index of the HCM City Stock Exchange fell to 360.43, the lowest level since June 20th.
Strong sales pulled down almost all listed codes and fund certificates in the bourse, making the index lose 14.48 points or 4.23 per cent in yesterday session.
Significant decliners included Tay Ninh Cable Car Tour (TCT) and PetroVietnam Drilling (PVD), whose falling levels exceeded the regulated trading band of 5 per cent for the southern market.
Many stocks from big firms, which are considered to have substantial impact on market development fell significantly. These were for example, Binh Dinh Mineral (BMC), Hau Giang Pharmaceutical (DHG) or Pha Lai Thermal Power (PPC).
Only ITA of Tan Tao Industrial Zone, which recently posted very impressive business performance results for the first three quarters, was immune to the declining trend. ITA stocks increased by 4.95 per cent to VND33,900.
A small number of other stocks added points including Thu Duc Housing Development (TDH), Minh Phu Seafood (MPC) and Bim Son Packaging (BPC).
The market witnessed 12.13 million shares worth VND405.94 million (US$24.16 million) changing hands, with the heaviest traded codes being Sacombank (STB) with 1.94 million shares, Phu My Fertiliser (DPM) with 809,310 shares and ITA with 534,290 shares.
"From our vantage point, Vietnamese retailers are clearly taking cues from western markets, primarily the US. If they see strong declines in the US, they sell strongly on the local exchanges; the same is true for increases, though there have been far too few instances of this over the past few weeks," said Misha Chellam, assistant to Viet Tin Financial Investment Corporation's chairman.
"There are some legitimate economic reasons for local investors to be attuned to the global financial downturn; however, there are also reasons why movements in the US indices need not be replicated on a daily basis in Viet Nam," said Chellam.
In Ha Noi, the HASTC-Index dipped 6.27 per cent or 7.71 points to 115.34, with just five codes adding points, including Vinashin Petroleum Investment and Transport (VSP), Thac Ba Hydro Power (TBC) and Machinery Installer Lilama 69.2 (L62).
The southern centre saw 8.36 million shares worth VND258.20 billion ($15.37 million) change hands.
Now is probably a decent time to start putting a little bit of money into the market in anticipation of a brighter future, according to Chellam.
VNN
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