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Index retreats but volume on the rise
A one-day rebound on the domestic stock exchange on Wednesday proved unsustainable, with the VN-Index generally tracking world and regional markets to retreat again yesterday.
The Index lost 1.8 points, or 0.74 per cent, to close at 242.53.
Volume rose by 41 per cent over Wednesday's session to reach a two-month high of 13 million shares, worth a total VND230.4 billion (US$13.6 million).
Sacombank (STB) regained its position as most-active share, with a whopping 4.2 million shares traded, followed by Saigon Securities Inc (SSI) with 840,000 shares.
Foreign investors continued to accelerate sales yesterday, contributing to the increased volume but driving losses. They were net sellers of about 1.5 million shares with a net value of VND23.2 billion ($1.4 million).
Gains in a few major codes prevented the VN-Index from plunging even more deeply. Software giant FPT advanced 3.8 per cent, while Petro Vietnam Finance (PVF) gained 3.55 per cent.
Thang Long Securities analyst Kris Bartkus said the price-to-earnings (P/E) ratio of shares on the domestic stock market was now about 10, the second-lowest in Asia after Thailand's (which is at about 7).
Bartkus noted that P/E ratio was now particularly attractive for such domestic firms as dairy producer Vinamilk (VNM), FPT, and Pha Lai Thermal Power (PPC).
"Foreign investors will gradually realise this," he said. "It's about time that domestic investors should buy shares that are assessed so low, to get ahead of the waves of foreign investment that will return to Viet Nam in the future."
But Kim Eng Securities analyst Ken Tai just last week was still predicting that the domestic market was likely to decline further due to uncertain economic conditions. A Government's economic stimulus package that had yet to take effect, and a weakened Vietnamese dong, would discourage foreign investors in the short- to medium-term, he said.
Tai suggested investors should continue to observe market developments and wait for "better opportunities".
In Ha Noi yesterday, the HASTC-Index gained a negligible 0.17 points, or 0.21 percent, to end the trading day at 82.10. Trading volume increased 10 per cent over the previous session to 6.5 million shares, for a turnover of VND123 billion ($7.2 million).
Asia Commercial Bank (ACB) led the Ha Noi market with nearly 2 million shares changing hands, followed by Vinaconex Group (VCG) with 1.2 million shares.
VietNamNet, Viet Nam News
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