HA NOI — Shares extended their losing streak during yesterday's session, following concerns over economic growth potential. Under a draft plan for the nation's economy, the Ministry of Planning and Investment announced it would target economic growth next year of only 6 per cent.
|An investor monitors transactions at the offices of Kim Eng Securities Co in HCM City. — VNA/VNS Photo Hoang Hai
Meanwhile, gross domestic product (GDP) grew by only 4.8 per cent in the first nine months of this year, the ministry said, a figure that was expected to rise to 5.3-5.6 per cent by the end of the year. Inflation for the year was expected to reach 7-8 per cent.
"While the economic growth targets can be achieved, curbing inflation at only 7-8 per cent is rather unrealistic," commented ACB Securities Co analyst Cao Tan Phat. "The prices of goods will probably start to rise again at the end of this quarter along with moves by major world economies to loosen monetary policies."
Reaching the growth targets, he added, would depend a great deal on the banking system's capacity to tackle bad debt and facilitate new lending.
"Investors will remain cautious as indices are approaching their resistance levels," Phat said, noting that many were waiting on results of the State Bank of Viet Nam's inspection of Sacombank (STB) following takeover rumours and rapidly declining profits.
On the HCM City Stock Exchange yesterday, the VN-Index closed down by nearly 1.4 per cent to 393.41 points. Over half of listed stocks tumbled. Trading was sluggish, with only 33.4 million shares changing hands, worth a combined total of VND541.7 billion (US$25.7 million).
Blue chips weighed on the market, sending the VN30 Index down by 1.24 per cent to 463.63 points. Only three out of the 30 leading shares tracked by the index managed to post gains, including logistics firm Gemadept (GMD), food processor Bourbon Tay Ninh (SBT) and property developer Vingroup (VIC). Meanwhile, 23 others retreated, most notably insurer Bao Viet Holdings (BVH), which plunged to its floor price of VND28,100 per share.
On the Ha Noi Stock Exchange, the HNX-Index also shed 1 per cent to close at 60.32 points. The value of trades totalled a mere VND216.9 billion ($10.3 million), declining 26.4 per cent from the previous trading day, on a volume of 24.2 million shares. Losers outnumbered gainers by 124-54. The HNX30 Index, tracking the bourse's 30 leading stocks by market capitalisation and liquidity, dropped 1.5 per cent to 112.12 points. — VNS