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Stock market ends 7 days of gains
Ho Chi Minh City stocks snapped their seven-day winning streak Friday as many investors took their cue from global markets to sell out while others booked profits after the recent rise.
The VN-Index, the country’s main stock index, tumbled 13.54 points, or 3.57 percent, to close at 365.57 points.
Many large caps like Saigon Thuong Tin Commercial Joint Stock Bank, PetroVietnam Finance Co., steelmaker Hoa Phat Group, fell by almost the daily allowed limit of 5 percent.
Nguyen Ngoc Thuc, head of brokerage at Empower Securities Corporation, told Thanh Nien Daily that sentiment was strongly influenced by the global stock markets.
US stocks were hammered for a second day in a row on Thursday as the euphoria of Barack Obama's victory dissipated.
The Dow Jones Industrial Average plummeted 4.85 percent, the tech-heavy Nasdaq slumped 4.34 percent and Standard & Poor's 500 index lost 5.03 percent.
The Tokyo stock market ended down 3.55 percent on Friday, hit by fears of a deep global recession after Wall Street plunged overnight and a profit warning from Toyota Motor Corp, traders said.
Empower’s Thuc said investors hoped the government would delay implementation of the capital gains tax on stocks, which is set to take effect next January.
Bloomberg quoted Ho Lam, a broker at the Hanoi-based EuroCapital Securities Co., as saying, “After seven days straight of gains, investors wanted to make some profit, while excitement over Barack Obama's win in the election started to wane.”
“However, the short-term outlook of the market is still positive because of the stability of economic fundamentals and the good third-quarter performance by listed companies.
“Unless there is bad news on the economy, the stock market may advance to 400 next week.”
Trading volume plummeted from Thursday’s 30.3 million to around 17.3 million shares. Of the index members, 144 dropped, 13 advanced, and 10 remained unchanged.
Foreigners were net buyers, notching up a positive figure of VND49 billion ($2.86 million). Saigon Securities Inc. and Vinamilk were among their favorite stocks.
Thao Vi
Thanh Nien, AFP
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