Monday, October 23 2017

VietNamNews

Dismal trading drags on bourses

Update: October, 14/2013 - 09:47
An employee of the Ha Noi Stock Exchange monitors transactions. Stock indices declined last week on both of the nation's exchanges. — VNA/VNS Photo Tuan Anh

HA NOI (VNS)— Benchmark indices ended down on both national stock exchanges last week.

The VN-Index on the HCM City Stock Exchange closed the week 0.6 per cent lower at 494.53 points, while the HNX-Index on the Ha Noi Stock Exchange dropped 0.51 per cent to 60.63 points.

The average trading value on the southern city's bourse was more than VND1 trillion (US$47.2 million) on a volume of around 65.7 million shares, which dropped 11 per cent over the previous week.

On the Ha Noi Exchange, trading value averaged VND252.7 billion ($12 million) with a volume of 29.8 million shares, 3.7 per cent and 11.5 per cent lower than the preceding week.

The increase in the group of blue chips failed to support the indices during last week.

Profit-taking occurred to shares of real estate, construction and seafood companies, such as Tan Tao (ITA), FLC Group (FLC), Hoang Quan (HQC) An Giang (AGF) and Viet An (AVF).

For the first two sessions last week, the market was on an upward trend thanks to the strong cash flow into blue chips such as property giant Vingroup (VIC), Bao Viet (BVH), Vietcombank (VCB), Vietinbank (CTG) and steel maker Hoa Phat (HPG) in hopes of a rally.

However, the trend reversed during the rest of the week, affecting not only speculative shares but also blue chips.

Foreign investors were net buyers on both bourses with a total value of VND298 billion ($14.19 million), helping increase market demand and maintain investors'optimism, although the global trend of capital flow away from emerging markets also affected Viet Nam.

According to FPT Securities (FPTS), the Vietnamese stock market was less likely to be affected by the US deadlock than the Chinese and Japanese markets because Viet Nam did not hold US Government bonds.

FPTS forecast that in the short term, capital flow would focus on shares with good business results in the third quarter.

The VN-Index was expected to slightly decrease this week to around 490 points, while the HNX-Index would fluctuate around 60-60.5 points, according to FPTS.

Good news came last week when it was announced that the growing rate of bad debts eased by one-third in the first eight months of this year, according to Bui Huy Tho, Deputy Director of the State Bank of Viet Nam's Management Department.

Viet Nam Asset Management Company (VAMC)'s rush to buy bad debts from credit institutions at the beginning of October was expected to boost investors' confidence.

According to MB Securities, investors should consider stocks with promising medium and long-term growth.

Ban Viet Securities forecast that foreign investors would continue to pour money into Viet Nam's stock market this week. — VNS


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