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VN-Index slumps as global woes scare investors
Ho Chi Minh City stocks took another beating Wednesday, with brokers saying sentiment remained depressed because of the global situation.
The VN-Index slumped for the fourth straight session, giving up 12.91 points, or 3.12 percent, to close at 401.33.
Trading volume was slightly higher at more than 17 million shares compared with Tuesday’s 11 million. Wednesday’s carnage saw 127 stocks tumbling – of which 92 lost by the daily maximum limit of 5 percent.
“Investors dumped shares and got out of the market,” a HCMC broker, who wished to remain unnamed, said.
Global stocks plunged in the financial vortex Wednesday, with London shares down nearly 6 percent after the Tokyo market came unhinged with its worst fall in more than 20 years.
From Hong Kong to Paris, Singapore to Frankfurt, investors dumped shares as fears grew that policymakers may be powerless to stop the worst global financial shock since the Great Depression.
In a dramatic day on fear-stricken markets, Tokyo plummeted 9.38 percent by the close, the biggest loss since October 1987 in the wake of the “Black Monday” crash in the US.
Hong Kong ended down 8.2percent at its lowest level in more than two years.
The bloodbath forced some countries to take dramatic steps to try to stem the selling. Indonesia suspended trading on its market after stocks plunged more than 10 percent.
Trading was later frozen on Russia's two main stock markets after falls of more than 11 percent on opening.
Elsewhere in early European trade, London recovered slightly to post a loss of 5.58 percent, Frankfurt lost 6.72 percent, Paris dived 8.18 percent and Madrid tumbled 5.41 percent.
Sydney closed down 5 percent Wednesday, Seoul lost 5.81 percent and Shanghai shed 3.04 percent as the crisis sparked by a US housing slump continued to send shockwaves around the globe.
The latest plunge came after Wall Street's Dow Jones Industrial Average sank more than 500 points or 5 percent on Tuesday to a five-year closing low.
Foreign investors were net buyers as they pumped in VND7 billion (US$423,000). Saigon Securities Inc., petroleum transport firm PV Trans Corp., PetroVietnam Fertilizer and Chemical Joint Stock Co., PV Drilling and Vinamilk were their favorites.
Thanhnien
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