VN markets remain in the mire
|Investors watch market fluctuations at FPT Stock trading centre in Ha Noi. Shares continued to slide on both national stock exchanges yesterday. — VNS Photo Thai Ha
HA NOI (VNS)— Shares continued to slide on both national stock exchanges yesterday.
Both national bourses tumbled as the stock market continued its four day slump.
The HCM City Stock Exchange fell 1.87 per cent to 486.82 points, with losers outnumbering gainers by 121-70.
Trading value increased 22.6 per cent compared to Thursday's level, exceeding VND1.16 trillion (US$54.7 million), while trade volume fetched 54.16 million shares.
The VN30, tracking the city's top 30 shares, retreated 1.36 per cent to 542.08 points.
Only three stocks rallied, including Eximbank (EIB), PetroVietnam Drilling Services (PVD) and Sacombank (STB); while Bao Viet Holdings (BVH), Kinh Do Confectionery (KDC), private equity group Masan (MSN), Vietcombank (VCB) and Vinamilk (VNM) were among the 26 shares that slid in value.
VNM yesterday lost VND7,000 (about 5 per cent of its value), achieving the fastest decline within a year.
With the exception of software developer FPT (FPT), selling pressure from foreign investors was the major cause in the fall in blue chips, said Bao Viet Securities Company analyst Nguyen Xuan Binh.
Similar to divestment trends in late June, the sell off by foreign investors this time appeared in emerging markets amid news the US Federal Reserve would cut its QE3 (quantitative easing) programme.
"However, the impacts of foreign divestment to the Vietnamese market will not be large," Binh said, "as the characteristics of Viet Nam's economy is different".
Whilst the domestic market has experienced a decline since 2009, some economic indicators have recovered after periods of instability, he added.
He expected the impacts would last in the short-term.
On the Ha Noi Stock Exchange, the benchmark HNX-Index slid 0.7 per cent to 61.42 points. The HNX30, representing the bourse's 30 largest shares by capitalisation and liquidity, also fell 0.54 per cent to 114.32 points.
With around 21.1 million shares changing hands, trading value slightly increased to VND176.9 billion ($8.3 million).
Foreign investors turned to be net sellers on both exchanges yesterday by a total margin of VND160.15 billion ($7.5 million).
Foreign investors had been net buyers in Ha Noi for the previous five sessions. — VNS