HA NOI (VNS)— "Dispirited and given up" was the general description of investors throughout last week's trading, which caused declines in both stock indices and value of trades on both national exchanges.
|Investors monitor shares at the Bao Viet Securities Co. Stock indices and value of trades declined on both national exchanges last week. — VNS Photo
On the HCM City exchange, the VN-Index lost more than 1 per cent over the course of the week, finishing Friday's session at 381.71 points, while the HNX-Index on the Ha Noi bourse slumped 1.12 per cent to close at 51.23 points.
Trading value slid on the two exchanges, averaging just VND324.6 billion (US$15.5 million) per session on the HCM City market and over VND113.4 billion ($5.4 million) per day on the Ha Noi market.
Modest increases of inflation in November in the two major cities, Ha Noi and HCM City, helped the market recover slightly on Wednesday. However, the market quickly retreated in the ensuing sessions.
"Slowing growth of the CPI this month was predicted in advance and its impact has declined in recent time," stock analysts commented on the financial website vietstock.vn.
Late last week, the November national inflation was reported to rise 0.47 per cent against last month, almost half of the increase of 0.85 per cent seen in October. Compared to December 2011, the inflation rose just 6.52 per cent, well in line with the Government's target of one-digit inflation this year.
The lack of positive information made any efforts in pushing up the market in vain, they said, adding few investors wanted to buy shares even if sellers did offer low prices.
Blue chips failed to support the market evidenced by the top 30 shares on the southern exchange decreasing 1.3 per cent of the VN30 over the week, standing at just 449.73 points.
The bleak market also discouraged foreign investors. They concluded as net sellers on the Ha Noi market, unloading shares worth VND6.4 billion ($306,000), but they were net buyers on the HCM City bourse with a modest net of VND4.3 billion ($206,000).
The conclusion of the National Assembly's meetings last week failed to improve investor psychology while the decision to increase the personal income tax rate had a negligible effect on the vision of a difficult economy ahead, FPT Securities Co analyst Nguyen Van Quy wrote in a report.
The market was heading to the nearest bottom of 375 points and efforts of bottom feeders would likely increase, boosting a new recovery, Quy said.
"However, given low liquidity in recent times, investors are encouraged to be cautious when the market tests the supporting level of 380 points this week," he said. — VNS