VN-Index slumps on Fed news

Comments by the head of the US Federal Reserve encouraged local investors to continue profit-taking yesterday, resulting in the VN-Index slipping 1.01 per cent to close at 500.28.

On Wednesday, Fed boss Ben Bernanke described the US economic outlook as “unusually uncertain,” but gave no indication as to what the central bank would do to improve the situation.

Sell-offs dragged down 183 of the 251 listed stocks on the HCM City Stock Exchange. The sole advancers were penny stocks, including HCM City Metal Corp (HMC), Foreign Trade Investment and Development Corp of HCM City (FDC) and Ha Tien Transport Co (HTV).

Meanwhile, VNE was the most heavily-traded stock, with 2.3 million changing hands.

Nguyen Trong Kien, a broker at a Da Nang branch of a securities company, said Bernanke’s negative comments and figures by the General Department of Viet Nam Customs that showed a high trade deficit had dampened investor sentiment.

“These reports weakened confidence in the market and encouraged investors to sell,” Kien said. “However, trading volume remained brisk, showing that some traders were buying.”

The value of the day’s trade was VND1.5 trillion (US$78.9 million) on a volume of 49.9 million shares.

Meanwhile, Pham Kinh Luan, an independent analyst, said that national stock markets had run short of speculative capital due to policies to stabilise the macroeconomy.

Luan said investors should actively look for market opportunities.

In Ha Noi, the HNX-Index slid 0.81 per cent to end at 157.68, with just 81 out of 315 listed shares advancing.

The value of the day’s trade however closed at VND1.1 trillion ($57.9 million) on a total volume of 37.9 million shares. PetroVietnam Construction (PVX) was the most active stock, with 2.55 million changing hands.

Foreign investors remained net buyers in HCM City, picking up 600,000 shares worth VND54.1 billion ($2.8 million). However, they were net sellers in Ha Noi, off-loading 50,000 shares worth VND1.5 billion. — VNS

Tags: vietnam stock, Vietnam stock market, VNindex

Posted by VBN on Jul 23 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