Shares recede on market jitters
HA NOI — Shares failed to retain earlier gains yesterday, extending last Friday's losses.
Although the consumer price index declined this month, deflation was welcomed as necessarily a good thing.
"If we try to tackle inflation by the classic method of tightening credit and pushing up interest rates, then we'll face an even greater problem with bad debt, unemployment and stagnation," commented Military Bank Securities Co director Quach Manh Hao. "But I don't think deflation can last long in a country which prefers growth like Viet Nam."
On the HCM City Stock Exchange yesterday, the VN-Index concluded the opening session of the week at 424.12 points, a 0.7 per cent decline from Friday's close, with over 200 out of 262 listed stocks declining.
The value of trades climbed 36.4 per cent, however, totalling around VND1 trillion (US$47.6 million) on a volume of 62.8 million shares.
The VN30 Index, tracking the southern bourse's leading shares by capitalisation and liquidity, retreated 0.45 per cent to 498.09 points. Of these shares, only food processor Masan Group (MSN) and real estate and entertainment services developer Vincom (VIC) advanced, with the latter hitting its ceiling price of VND85,000 per share.
Trading was slower on the Ha Noi Stock Exchange, with the value reaching only VND421.9 billion ($20 million) on a volume of just 42.5 million shares. The HNX-lost over 2 per cent from Friday to end the day at 71.80 points. Decliners outnumbered advancers by 202-41.
Property developer Sacomreal (SCR) was the most-active share nationwide with nearly 3.9 million traded.
VietCapital Securities Co analyst Truong Le Minh predicted that benchmark indices on the nation's stock exchanges could improve by 15-20 per cent in the next couple of months, but he could not exclude the possibility that the VN-Index would fall below 405 and the HNX-Index below 71.80 points, it's closing point yesterday.
"If that happens, we recommended cutting losses," Minh said.
Minh also advocated short- and medium-term buys of MSN, as well as PetroVietnam Gas (GAS), real estate developer DIG, Becamex Infrastructure Developer Co (IJC), insurer Bao Viet Holdings (BVH), and VNDirect Securities Co (VND). — VNS