Shares track declining global markets
HA NOI — Shares declined on sluggish trades yesterday, tracking tumbling global markets overnight. The combined volume of trades on both of the nation's stock exchanges dropped to less than 29 per cent of Monday's level.
"Since last year, the level of correlation between the Vietnamese market and global markets has clearly increased," Kim Eng Securities Co analysts wrote in note yesterday.
The VN-Index has posted three consecutive declining sessions, typically not a good sign, they added.
"Technically, there are no signals coming from prices as the two indices are still trading below their resistance levels," they said.
On the HCM City Stock Exchange yesterday, the VN-Index closed down by about 1 per cent to 428.16 points and the value of trades reached only VND838.4 billion (US$39.9 million) on a volume of just over 57 million shares.
Over 70 per cent of codes closed unchanged, while 41 advanced and 45 declined, including most blue chips. However, Vietinbank (CTG) and property developer Hoang Anh Gia Lai (HAG) were able to buck the trend, gaining 0.5 and 0.4 per cent, respectively.
The VN30 Index, tracking the city's 30 leading stocks in terms of capitalisation and liquidity, reached 506.49 points, a decline of 0.7 per cent from the prior session.
On the Ha Noi Stock Exchange, the HNX-Index shed 1.6 per cent to close at 74.60. Over half of listed codes dropped points, while value shrank to a mere VND458.2 billion ($39.5 million) on a volume of only 43.45 million shares, respectively.
Bao Viet Securities Co analysts predicted that the European debt crisis could have significant adverse impacts on Vietnamese exports and flows of foreign investment.
Notable is that overall market capitalisation has increased recently with the listing of a number of new shares, but liquidity and indices have fallen.
"The increasing number of new and additional listings this year has actually been a barrier to the growth of the market," they commented. Nevertheless, they predicted that strong domestic investment would enable markets to rally this month. — VNS