Tuesday, August 22 2017

VietNamNews

Stock values, volumes plunge despite declining fuel prices

Update: June, 22/2012 - 10:17

 

Investors watch trading at HCM City-based Sacombank Securities Co. Both stock indices plunged yesterday despite a low CPI in major cities. — VNA/VNS Hoang Hai
HA NOI — A sluggish mood overshadowed the market yesterday, pushing down stocks on both national exchanges.

Despite the Consumer Price Index (CPI) declining slightly in Ha Noi and HCM City during June, the benchmark VN-Index gave up 0.4 per cent to close yesterday's session at 431.14 points.

Trading value improved by 11 per cent over Wednesday, however, reaching VND687 billion (US$32.7 million) on a total volume of 44 million shares.

Blue chips slumped as 22 of the top 30 shares by market value and liquidity sank while only four climbed.

Vietcombank (VCB), Vietinbank (CTG) and property developer VinGroup (VIC) increased by just 0.3-1 per cent, but on the other end of the spectrum, Ocean Group dropped to the floor price, Sacombank (STB) fell 2.2 per cent while Vinamik (VNM) and insurer Bao Viet Holdings (BVH) closed down over 1 per cent.

The VN30 Index slid 0.42 per cent to 504.71 points.

Without supporting news, Duc Long Gia Lai Group (DLG) surprised the market by becoming the most active stock on a total trade of 4 million shares, but the stocks sank 4.2 per cent to settle at VND9,200 ($0.44) a pop.

"Market movement today showed that the news about the June CPI and a possible domestic gasoline price cut did not support investor sentiment," Nguyen Xuan Binh, analyst at Bao Viet Securities Co, wrote in a research note.

"The decrease in the June CPI may show the possibility of deflation, considered a negative sign during economic recession," he added.

Yesterday afternoon, the petrol price again decreased by VND700 to VND21,200 ($1.01) per litre. While it is the forth time fuel prices had been reduced in the past two months, analysts said the decision would have little impact on the market.

On the Ha Noi Stock Exchange, the HNX-Index also declined 0.62 per cent to conclude at 73.90 points as losers outnumbered gainers by 125-80.

Poor trading dragged market volume down to only 25.3 million shares worth a total VND274 billion ($13 million). PetroVietnam Construction (PVX) remained the most active code with 3.5 million shares changing hands, shedding 1.9 per cent to a close of VND10,200 ($0.49) per stock.

Foreign investors ended their net sell run by concluding yesterday as net buyers on both exchanges, picking up a combined VND24 billion ($1.1 million) worth of shares. — VNS

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