HA NOI — Fourth-quarter earnings data will begin hitting the market this week, but many market insiders expect a mixed result to further rattle investor confidence in the first trading week of the new year.
Preliminary data from the State Securities Commission suggests that 60 per cent of listed companies saw their profits decline in 2011 compared to the previous year, with 14 per cent suffering losses in the third quarter. Poor performance of listed companies was attributed to unfavourable domestic market conditions accompanied by towering lending rates and high inflation.
The time for companies to close their books for the end of the year has passed, so some of the factors that might increase pressures on investors to unload shares have eased, giving some traders hopes that the market will see more lively sessions in the first week of the year.
"However, the fundamentals have not changed, and the market continues to trade in high-risk areas," in-house analysts of the financial portal vietstock.vn wrote in their weekly report.
Pessimistic investor psychology continued to dominate last week's transactions. On the HCM City Stock Exchange, the VN-Index lost another 1.3 per cent from the previous week's close, concluding Friday's session at 351.55 points. The value of trades during the week averaged VND747 billion (US$35.6 million) per session on an average volume of 52.5 million shares.
On the Ha Noi Stock Exchange, the HNX-Index was more of a surprise, managing to gain a cumulative 1.28 per cent during the week, with two rising sessions out of five, before closing on Friday at 58.74 points.
Heavy sales helped push up trading volumes. Market volume increased 8.6 per cent to an average of over 32.3 million shares, with the average daily value of trades reaching VND269.6 billion ($12.2 million).
Fourteen out of 24 sectors posted losses last week, with insurance shares declining by over 12 per cent and securities shares were down nearly 4 per cent.