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Stock fall continues as volumes plunge
Shares continued to lose value on the HCM City Stock Exchange yesterday as trading volumes also fell, pushing the VN-Index down 1.07 per cent to close at 458.04.
Activity was off 41 per cent from Tuesday’s session, with trades totalling VND1.3 trillion (US$73 million) yesterday on a volume of 34.4 million shares.
On the Ha Noi Stock Exchange, the HNX-Index also slid 1.71 per cent to end Wednesday’s trading at 152.14. Volume fell 37 per cent from the previous session to 20 million shares, worth a combined VND893.4 billion ($50.2 million).
FPT Securities Co analysts called the downward adjustments a "very normal market reaction" after the rally of the past five days, adding that gains in financial shares were helping prop up the market and would continue to be "a hope" for the market in the coming days.
Most active
Banking and financial shares continued to be the most active on both bourses yesterday, with Sacombank (STB) accounting for 18 per cent of the total volume on the southern exchange with 6.2 million shares changing hands, and Kim Long Securities (KLS) generating orders for 3.4 million shares, representing 17 per cent of the total volume on the northern market.
In HCM City yesterday, net buys by foreign investors remained significant at about 2 million shares, worth a total of VND117.5 billion ($6.6 million), although their overall volume stayed modest at 4.9 million shares.
In Ha Noi, foreign investors traded 1.2 million shares, worth a total of VND54.3 billion ($3.1 million). They were most interested in Tien Phong Plastics (NTP), picking up 265,100 shares, while shedding 100,000 shares of Vinaconex Stone.
FPT Securities Co said in its second-quarter market review that the price-to-earnings (P/E) ratio on the domestic market was now about 13.5, equivalent to other stock markets in the region.
With current positive moves in the economy, the VN-Index could consolidate its recent gains during August and possibly experience strong gains in September, the company predicted.
VinaCapital economist Pham Do Chi also told the local press that the P/E ratio was "relatively cheap", suggesting investors gradually buy in.
Chi expected the VN-Index to hover at around 500 by the end of the year.
On the unlisted public company market yesterday, the UPCoM-Index advanced by 3.58 per cent to close at 79.77 points, a surprising upward move driven by gains in shares of APEC, Cho Lon and SME securities companies.
Trading value reached VND2.8 billion ($157,300) on a volume of 215,400 shares, with a half the volume generated by SME Securities (SME).
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