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Stocks continue to flounder
The market remained depressed Monday though many large firms turned in positive third quarter results and inflation slowed down this month.
The VN-Index lost 15.83 points, or 4.59 percent, to close at 329.28. The trading volume was 14.7 million shares as 157 stocks fell, five rose and two remained unchanged.
“Local investors have lost direction,” said Hoang Xuan Quyen, Hanoi-based chief analyst at Tan Viet Securities Inc. “Because of the global crisis, foreign investors have been net sellers, which is a major concern for local investors.
“Though the prices of many stocks are very cheap, investors don't dare buy, so the market will continue to decline. If the market keeps falling like today, the VN-Index will decline to 300 this week.”
Many of the market’s drivers, including large caps like dairy maker Vinamilk, property firm Vincom, PV Drilling, Pha Lai Thermal Power and Saigon Securities Inc., were unloaded despite their higher third quarter earnings.
Investors also ignored a slowdown in the consumer price index this month, which fell by 0.2 percent from the previous month.
Foreigners continued to unwind positions, notching up net sales of VND39.3 billion (US$2.4 million). PetroVietnam Fertilizer and Chemical Joint Stock Co., Pha Lai Thermal Power, plastic packaging firm Tan Tien, food maker Nam Viet and property firm Vincom were among the stocks they dumped the most.
Elsewhere in Asia, Thailand suspended trading on its stock exchange toward the end of the day after the index fell by 10 percent on fears of a global recession.
The Stock Exchange of Thailand composite index had lost 43.29 points and fallen to 389.58 points when trading was halted, while the SET-50 Bluechip Index fell 32.98 points to 265.42 points. Trading is automatically suspended when the SET falls 10 percent.
Hong Kong shares Monday closed 12.7 percent down - their biggest single-day percentage drop since 1991 - as investors dumped stocks on fears of a looming global economic recession, dealers said.
Japanese stocks plunged more than 6 percent, hitting their lowest level since 1982 before the economic bubble, despite efforts by the government to shore up the crumbling market. The Nikkei fell 486.18 points, or 6.36 percent, to end at 7,162.90, the lowest since October 1982.
Thanhnien
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