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Market hopes 220-point support level will hold
The Ho Chi Minh City stock market Monday closed in the red for the 10th day in a row as analysts look forward to the next support levels as higher levels have failed to hold.
The Index opened at 244.02, a loss of 8.55 points, or 3.39 percent.
In a day of moderate trading, more than 9.6 million shares changed hands as losers beat gainers by 135 to 18.
All sectors lost, with information technology and financials leading the falls.
Foreigners Monday continued their selling spree, dumping stocks worth over VND41.5 billion (US$2.37 million) and buying for VND32.3 billion.
Ho Chi Minh City Securities Corporation (HSC) said in its market comment: “The HCMC market broke below the psychological 250 level, proving it was not much of a support line in reality.
“Now that we have broken down the market may see some weakness over the next day or two but we would be looking for any sign that buyers are coming back in again.
“After all we do expect some support above the 220 line and as this is well-known we may see some early buyers. So we would watch the bids quite carefully from now looking for a technical bottom. And note the number of small cap stocks that see rallies toward the end of the trading day.”
The brokerage said it suspected that February’s key macroeconomic numbers would improve on poor January numbers and on a year-on-year basis, thanks to the reverse Tet effect.
“These numbers may encourage sentiment a little bit but we should remember that the trend of the economy is still very weak. Even so, some investors may take some encouragement from the numbers as they confirm there is still some economic activity going on,” HSC said.
The company also said it has yet to see any “forced selling” from foreign funds despite the rumors.
Stock performances
Pha Lai Thermal Power (PPC) slid VND100, or 0.6 percent, to close at VND17,600. The company said on the exchange’s website its pre-tax profit was VND95.4 billion ($5.46 million) in January.
Full Power Joint Stock Co. (FPC), which provides architectural and interior design, construction and installation of electrical systems, remained unchanged at VND19,200. The company has been placed in a watch list after posting a loss of VND44.4 billion ($2.54 million) last year, the bourse said on its website Monday after the market closed.
So far, 13 firms listed on the Ho Chi Minh Stock Exchange are being monitored.
Vinh Son - Song Hinh Hydropower Joint-Stock Company (VSH) remained at VND28,100. The company said it would pay a dividend of VND800 per share, the second payment for 2008, on April 24.
Thao Vi
thanhnien
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