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Index falls to 288 on weak demand
Share prices hit new lows yesterday on the HCM City Stock Exchange, as the VN-Index fell further below the 300-point mark.
The VN-Index dropped 10.99 points, or 3.67 per cent, to close at 288.69. Trading volume reached 12 million shares on a turnover of VND287 billion (US$17.4 million), while the day witnessed 140 losers and only 11 gainers.
Activity continued to be sluggish in most codes, except for Sacombank (STB) which generated orders for 2.7 million shares. Runner-up Saigon Securities Inc (SSI) saw only 827,000 shares changing hands.
Foreign investors were net sellers of about 400,000 shares, worth VND17 billion (about $1 million). Bui Van Quang, director of SME Securities' HCM City branch, said that now that the VN-Index has lost about 70 per cent since the beginning of the year, investors were no longer surprised about the Index falling below the 300-point mark.
In the dark
"Investors are still in the dark about how long it will take the market to rally, so they are reserved about buying in," Quang said. "Sellers, meanwhile, are selling in droves.
"Market liquidity, as a result, remains modest."
Quang said investors were currently keeping an eye on world economic developments and waiting for an official decision on whether to delay the new tax on capital gains from securities trading, as well as for listed firms' fourth-quarter business results, before making further investment decisions.
Analysts at EuroCapital Securities said that, while the US economy was troubled with increasing unemployment and major automakers were on the verge of bankruptcy, moves by domestic policymakers last week, from cutting the prime rate to easing fuel prices, had little positive impact on the stock market.
The analysts expected Vietinbank's pending IPO this month, alongside Japan's decision last Thursday to freeze official development assistance (ODA) to Viet Nam, might have a greater impact on the domestic stock exchange.
"In the context that the on-going economic difficulties and with almost no major investor transactions to spur the market, a rebound is not expected," Ha Noi Securities said in a report.
In Ha Noi yesterday, the HASTC-Index closed 3.31 per cent lower at 100.11 points, with 126 codes declining and 15 advancing. About 6.4 million shares changed hands for a total value of VND136.5 billion ($8.3 million).
The northern exchange also saw modest trading, as activity concentrated on Asia Commercial Bank (ACB), with 1.4 million shares traded. Kim Long Securities (KLS) was next with only 675,000 shares, followed by Vinaconex Group (VCG) with 596,000.
Viet Nam News, Vietnamnet
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