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Are Vietnam markets decoupling from US, Europe?
Both Vietnam's stock markets slumped Wednesday to their lowest levels in almost three years, with analysts saying they are weighed down by doubts about the global market rebound and concerns about the economic slowdown.
The Ho Chi Minh Stock Exchange’s VN-Index closed at 311.74 points, the lowest since January 2006, as it lost 8.59 points, or 2.68 percent.
The HASTC-Index closed below 100 for the first time since February 2006. It slipped 5.68 points, or 5.4 percent, to finish the day at 99.56.
In HCMC, trading again remained muted with only around 11.9 million shares changing hands. Declines outnumbered advances 129 to 27, while 15 shares remained unchanged.
Nguyen Anh Tuan, deputy head of brokerage at HCMC-based Viet
Dragon Securities Corporation, said investors were earlier looking for cues from the US and European markets.
But now, with those markets becoming wobbly, they have lost confidence, he said.
On Wall Street Tuesday, the Dow Jones Industrial Average rose 0.43 percent but the tech-heavy Nasdaq fell 0.50 percent.
Cao Thanh Dinh, chief executive of HCMC-based DongA Securities Company, said: “Investors are concerned about deflation and the government’s priority for tackling inflation.”
Prices slowed for a third month in November, falling 0.76 percent from October, after declining 0.2 percent last month.
“The government said it would continue to aim its macroeconomic and monetary policies at curbing inflation. This means there will be no breakthrough measures to boost the economy. Companies will not grow. Surviving a slowing economy is difficult enough.
“Funds and foreign investors are holding on to their money or trading small amounts of shares to restructure their portfolios. The stock market will remain gloomy until the end of the year as companies will encounter many more difficulties in production and exports.”
The newly listed Traphaco Joint-Stock Company, a manufacturer and trader of herbal medicines, plunged by the maximum allowed 20 percent on the opening day to close at VND63,500.
Saigon Thuong Tin Commercial Joint-Stock Bank, or Sacombank, the Ho Chi Minh Stock Exchange’s only listed lender, was the most active by volume, with more than 2 million shares being traded.
Thao Vi
Thanh nien, AFP, Bloomberg
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