Patience with market wears thin

Despite strong rallies on Asian stock markets yesterday, the benchmark on the VN-Index dropped 1.34 per cent to close yesterday’s session at 491 points, a two-month low.

On the HCM City Stock Exchange, the volume of the day’s trade increased by 9 per cent to 46.68 million shares, worth a combined VND1.38 trillion (US$72.6 million).

Investors lost their patience when the VN-Index pierced through its supporting point of 495, after making heavy sales on both blue-chip and penny stocks. The market breadth’s was negative with only 22 codes closing with gains, while 199 others declined and 33 remained unchanged.

With more than 1.63 million shares changing hands, Foreign Trade Development and Investment Corp of HCM City (FDC) closed yesterday at VND47,200 ($2.48), an increase of 2.6 per cent.

On the Ha Noi Stock Exchange, the HNX-Index sank to this year’s low of 152.38 points, a drop of 1.64 per cent since Tuesday. Trade values increased by 14 per cent, however, reaching VND1 trillion ($52.6 million) after 34.5 million shares changed hands.

Losers outnumbered gainers by 233-59, after all blue-chips slumped. PetroVietnam Construction (PVX), topping the market volume with 2.76 million shares traded, shed 3.62 per cent to close at VND26,600 ($1.4).

The Ha Noi bourse yesterday welcomed three new listings from Hoang Ha Co (HHG), Hai Minh Corp (HMH) and Viwaseen-Hue Investment and Construction Co (VHH).

HHG decreased by 41 per cent from its opening price to VND16,900 on a volume of 590,000 shares changing hands, while HMH closed after decreasing 20 per cent to VND31,300 ($1.65) on a volume of 42,000 shares. VHH’s value remained unchanged at VND20,000 ($1.05) on a volume of 47,400 shares.

Yesterday’s sharp decline was unexpected after the recent positive performance of the domestic economy and solid rallies on the global market.

Ha Thanh Securities Co’s head of the analysis department Tran Van Don said the State Bank’s decision to keep the prime interest rate at 8 per cent in August did not affect investors sentiment much because the interest rate was correlated with commercial banks’ performance.

VNDirect analysts said shares continued to decline, driving many investors to sit out of the market or sell shares to take mild profits.

“If the market passes 490 points, it will likely rebound as many investors would participate in the market at that point range,” VNDirect said in a market report.

Foreign investors continued to be net sellers on the HCM City market and were responsible for a net sale of nearly 158,000 shares worth more than VND19 billion ($1 million). They were still net buyers on the Ha Noi market after purchasing 17,500 shares worth VND5 billion ($263,000). — VNS

Tags: vietnam stock, Vietnam stock market

Posted by VBN on Jul 29 2010. Filed under Stock. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry