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Global falls weigh on local markets

Update: June, 21/2013 - 10:13

HA NOI (VNS)— Stocks widened their losses yesterday afternoon, weighed down by falling global markets.

Global stock markets plunged steeply yesterday following an announcement by the US Federal Reserve on Wednesday that it would stop its quantitative easing programme next year.

"Although the Vietnamese stock market lacks correlation with the rest of the world, the Fed's policy seemed to have worldwide impacts," analysts of FPT Securities Co commented on their website.

In addition, news that the National Assembly approved the revisions to the Law on Corporate Income Tax which will cut the tax rate from the current 25 per cent to 22 per cent from January 1, 2014 failed to boost local investors.

"Both buyers and sellers showed caution with the market outlook," analysts said.

On the HCM City exchange, the VN-Index for the second time retreated below the psychological threshold of 500 points, down 0.77 per cent from the previous session at 499.51 points.

However, the market volume rose 15 per cent from the previous session to 49.5 million shares and fund certificates worth VND812.6 billion (US$696.5 million).

Blue chips led the downturn when 23 of the 30 largest shares on the southern exchange declined while only three advanced, pushing the VN30 down 0.31 per cent at 555.01 points.

Steel sheet maker Hoa Sen Group (HSG) was among few shares bucking the trend when posting a gain of 3.8 per cent to finish at VND43,500 ($2.07).

The group yesterday morning signed a strategic agreement with Vietinbank that will see Vietinbank provide the company with a credit limit worth up to VND2.5 trillion ($119 million) in the short and long term.

On the Ha Noi Stock Exchange, the HNX-Index also gave up 0.75 per cent to finish yesterday at 64.53 points with a low trading value of VND288.5 billion ($13.7 million).

Property developer FLC Group (FLC) was again the most active code on the northern bourse with nearly 4 million shares changing hands, slumping over 4 per cent at VND7,100 each.

The foreign sector continued to unload shares on the HCM City market, responsible for a net sell of VND91.45 billion ($4.4 million) worth of shares.

They were still net buyers on the Ha Noi exchange, however, picking up shares worth VND32 billion ($1.5 million). — VNS


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