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Market continues to retreat on sentiment
The Ho Chi Minh Stock Exchange remained bearish Tuesday, with an investment fund director blaming the continued downtown on investors’ confidence remaining low after the recent collapses.
The VN-Index, the gauge of 160 leading firms and four closed-end funds, continued to fall, losing 6.48 points, or 1.97 percent, to close at 322.8. The trading volume was, however, up Tuesday, at more than 18 million shares compared with Monday’s 14.7 million. Of the index’s members, 127 declined and 28 rose.
“It is very clear that investor sentiment is the main driver of the stock market now,” said Nguyen Hai Ha, investment director of Hanoi Fund Management. “Sentiment among local investors has been low recently. Most of them do not pay attention to the fundamentals of listed companies because their main concern is the situation in the global market, particularly in the US.
“That's why I expect the VN-Index to continue to decline in the short term. Institutional investors, especially funds, who have been under pressure to sell assets for cash, have kept selling shares.
“However, because the prices of many stocks have become very attractive, many close-ended funds have started buying.”
US stocks ended lower on Monday despite news that the US Treasury was preparing to inject some US$125 billion into nine major banks this week as part of a massive rescue plan.
The Dow Jones dropped 2.42 percent overnight to end at 8,175.77 points, according to AFP.
Saigon Thuong Tin Commercial Joint Stock Bank, the HCMC exchange’s only listed lender, remained the most active stock by volume, with more than three million shares changing hands. The HCMC-based bank, known as Sacombank, closed lower by VND200, or 1.04 percent, at VND19,000.
Sacombank informed the exchange that it has canceled plans to issue more than 88 million bonus shares to existing shareholders, three million to its employees and more than 1.2 million to foreign partners.
The bank also cut this year’s pretax profit target of VND2 trillion ($119.15 million) to VND1.5 trillion ($90 million), according to the exchange.
Saigon Telecommunication and Technologies Corp. was the biggest gainer, advancing VND1,200, or 4.98 percent, to close at VND25,300. The firm announced on the exchange’s website that Kinh Bac City Development Share Holding Corp. raised its stake from 18.19 percent to 18.89 percent.
Saigon Maritime Joint Stock Co. Ltd. was the biggest loser, dropping VND6,600, or 19.7 percent as it went ex-dividend, to finish at VND26,900. Luu Thi Van, daughter of chairman Luu Tien Ai, sold all of her stake of 0.075 percent, or 2,252 shares, according to the exchange’s website.
Foreign investors continued to sell off, notching up net sales of VND58 billion ($3.5 million). Steel maker Hoa Phat Group, Pha Lai Thermal Power, shipping firm Gemadept Corp., Vinh Son Hydropower and Ho Chi Minh City Infrastructure Investment Joint Stock Co. were among the stocks that bore the brunt of their selling.
Thanhnien
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