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CPI, inflation fears hit shares

Update: April, 16/2013 - 09:24
Investors study the bourse at Bao Viet Securities in Ha Noi. The new trading week began bleakly yesterday with stock indices dropping more than 2 per cent. — VNS Photo Viet Thanh

HA NOI (VNS)–  The new trading week began bleakly yesterday, with stock indices dropping more than 2 per cent following a whirlwind of negative predictions about the country's rising consumer price index (CPI) and the subsequent threat of inflation.

In the Bao Viet Securities Company's Q1 economic update, it was predicted that CPI in April would rise by between 0.5-0.8 per cent following a slide in March. The firm said that the growth would be caused by the recent 6 per cent increase in fuel prices and predicted that the transport sector would contribute around 0.3 per cent to the CPI rise.

However, even with this negative prediction, analysts were still taken by surprise by the sudden and significant fall the market experienced yesterday.

On the HCM City Stock Exchange, the VN-Index dropped over 2.8 per cent to 480.02 points.

Only 39 listed shares managed to grow, while most of the stocks closed unchanged.

Trading value hit VND912.35 billion (US$43.4 million) as 54.8 million shares changed hands.

Eximbank (EIB) was the only one of the 30 leading stocks tracked by the VN30 to remained unchanged, while Phu Nhuan Jewelry (PNJ) and PetroVietnam Finance (PVF) lost the maximum allowed rate of 7 per cent.

Other blue chips fell to their bottom prices for several minutes during yesterday's session and the VN30 tumbled by 3 per cent to 546.28 points.

On the Ha Noi Stock Exchange, the HNX-Index finished at 58.87 points, a 2.4 per cent fall compared to last Friday's close. However, turnover increased 25.5 per cent to nearly VND370.2 billion ($17.6 million).

Losers overwhelmed gainers by 168-44. The HNX30, representing the northern exchange's 30 largest shares in terms of capitalisation and liquidity, dropped 2.97 per cent to 110.48 points. Foreign investors ended the day as net buyerson both bourses, depite the market decreases, contributing to a positive magin of VND63.4 billion ($3 million). — VNS


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