Stocks plunge on poor outlook
HA NOI — Lower petrol prices have failed to boost investor confidence, and declining inflation is now being viewed by some market watchers as a sign that the global economy may go into another recessionary spiral again.
After months of negative growth, credit expanded by 0.17 per cent in June, but the pace was far below the Government's target of credit growth this year, totalling 12-13 per cent. Enterprises continued to be hampered by high credit costs, high inventories, and electricity and water rate hikes.
"I have contacted many enterprises and see very few bright spots by year's ends," said Ngo Long Giang, asset management manager at MB Capital. "Most companies are just trying to survive now, let alone expand their business"
On the HCM City Stock Exchange yesterday, the VN-Index shed another 1.48 per cent of its value to close at 413.09 points. The value of trades improved 10 per cent over Monday, reaching VND678.7 billion (US$32.3 million), but decliners overwhelmed advancers by a five-to-one margin.
The VN30 Index, tracking the southern market's top shares, declined by 1.16 per cent to 486.95. Gainers among blue chips included HCM City Infrastructure Investment Co (CII), up 2.6 per cent, and seafood processor Hung Vuong Co (HVG), up 1.3 per cent.
Refrigeration Electrical Engineering (REE) was the most-active share, with over 2 million changing hands, but it closed unchanged at VND15,800 per share.
On the Ha Noi Stock Exchange, the HNX-Index fell by 1.26 per cent to 69.21 points. Trading was sluggish on a volume of 38 million shares, worth VND340.7 billion ($16.2 million).
Losers outnumbered gainers by 192-47.
VNDirect Securities Co (VND), with 4.36 million shares traded, was the most-active code in Ha Noi, but it lost over 1 per cent to end the session at VND9,600.
Foreign investors became net buyers on both exchanges yesterday, picking up shares worth a combined VND21.4 billion ($1 million). — VNS