Monday, May 29 2017

VietNamNews

Stocks, gold react to global tensions

Update: April, 15/2017 - 02:00
An investor watches trading at the Tân Việt Securities Co.’s trading floor. — VNS Photo Đoàn Tùng
Viet Nam News

 

HÀ NỘI – Shares sank further on Friday on the two national exchanges as investors became cautious over escalating global tensions.

The benchmark VN Index lost 10 points in early morning trading following reports that the US had dropped a massive non-nuclear bomb on ISIS targets in Afghanistan.

The southern market recovered in the afternoon, though it closed 0.81 per cent down at 718.45 points.

The southern index has lost 1.8 per cent in the last three sessions.

On the Hà Nội Stock Exchange, the HNX-Index was down 0.43 per cent to close at 89.64 points. It was up 0.13 per cent on Thursday.

Tensions between the United States and Russia over Syria and between the US and North Korea have fueled investors’ fears of negative impacts on local stock markets.

Roughly 60 per cent of the shares on the HCM Stock Exchange slumped, with only five of the top 30 companies by market value and liquidity advancing.

Friday’s slump “was mainly driven by investors’ anxiety over the global instability as well as military risks,” analysts at BIDV Securities Co (BSC) wrote in a note.

Major shares like Vinamilk (VNM), Vietcombank (VCB), Vietinbank (CTG), Bảo Việt Holdings (BVH), Vietjet Air (VJC), Masan Group (MSN) and PV Gas (GAS) all declined.

Growth of bargain buying in the afternoon trade cushioned the market, with the recovery of speculative stocks like real estate and construction.

Gainers included FLC Group (FLC), Tân Tạo Investment Industry (ITA), Hoàng Quân Consulting Trading Service Real Estate (HQC), Dream House Investment (DHR), Cửu Long Petro Urban Development & Investment (CCL), Khang An Investment Real Estate (KAC) and Long Giang Investment & Urban Development (LGL).

BSC’s analysts predicted the market was likely to rebound early next week and trade around 720 points when investors become more positive.

Trading volume increased slightly to 255.3 million shares on the two exchanges, the value of trades decreased 8.5 per cent, totaling VNĐ4.3 trillion (US$188.6 million).

Foreign investors went against local investors’ movements in picking up shares worth VNĐ53 billion in the two markets, extending their buying streak to five consecutive sessions.

Gold continue to rise

Local gold prices continued to rise, crossing VNĐ37 million per tael, the highest since February 16, 2017. (One tael is equivalent to 1.2 ounces.)

SJC gold sold by Sài Gòn Jewelry Joint Stock Company on Friday’s afternoon touched VNĐ37.22 million per tael while it bought at VNĐ36.97, up VNĐ380,000-430,000 over Thursday’s selling/buying prices.

Price of gold manufactured by the Bảo Tín Minh Châu Jewelry Joint Stock Company was quoted at VNĐ37,030-37,110 for buying/selling, up VNĐ280,000-300,000 over a day earlier. The DOJI Group also hiked its gold prices by around VNĐ300,000 per tael. – VNS

 

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