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Stocks edge down, downtrend likely to persist
The Ho Chi Minh Stock Exchange fell for a second straight day Tuesday amid falling international markets and growing worries about capital gains tax, which is set to take effect in the new year.
The VN-Index closed 1.26 percent down at 340.69 points.
Of its 170 members, 45 advanced and 100 declined.
Nguyen Hai Son, a broker at FPT Securities Co., told Thanh Nien Daily that sentiment was hit by global stock declines.
Asian stocks fell by up to 5 percent on Tuesday as prospects of a deep global recession and one of the biggest job cut plans in history at Citigroup doused expectations of a financial sector recovery in 2009, according to Reuters.
Major European stock market futures shed as much as 0.6 percent in early trade, following losses in Asia and the US. S&P 500 futures were down 0.8 percent
“Institutional investors are still selling shares heavily as they are worried about the capital gains tax,” Son said.
“Retail investors are hesitant because of the uncertainty.” He said he expects the market to fall again today.
The new Personal Income Tax Law seeks to slap a tax of either 0.1 percent on every sale of securities or 20 percent on the whole year’s net profit.
Hoang Uy
Thanh nien
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