HA NOI — Stocks tumbled yesterday morning on both national exchanges but managed to edge up in afternoon trading on the the HCM City Stock Exchange, with the VN-Index closing up by 0.1 per cent over the previous session to 432.11 points.
The value of trades fell by about VND100 billion (US$4.7 million) from Thursday's level to VND1.5 trillion ($71.4 million), while volume dropped 12.8 per cent to 79 million shares.
A number of blue chips managed to post gains, including half of the 10 leading shares by capitalisation. However, shares of real estate developer Hoang Anh Gia Lai (HAG), PetroVietnam Finance (PVF) and Sacombank all bottomed out.
The VN30 bucked the trend on the benchmark index, closing down by 0.4 per cent to 487.03 points.
The only news released yesterday that might have had an impact on trading was the Ministry of Finance's announcement that it would consider measures to change individual income tax regulations to favour securities investors who incur losses.
Two methods currently exist for investors to pay taxes on capital gains. They can pay a 20-per-cent tax on their net gains for the year, or a flat 0.1-per-cent rate on the value of every transaction. However, problems arose because investors were required to register for one of the methods in the year preceding the year they would incur the tax obligation.
"This makes some end up paying taxes even though their investments haven't generated gains," the ministry said.
Under a proposed change, investors would have the right to choose the most appropriate method after annual tax settlement, which means securities traders with losses would not be subject to taxation.
"The problem will be solved soon rather than waiting until the revised Law on Individual Income Tax takes effect in 2014," the ministry said.
On the Ha Noi Stock Exchange yesterday, the HNX-Index declined by nearly 0.38 per cent to conclude the day's trading at 71.56 points. Value totalled VND651.5 billion ($31 million) on a volume of 71.5 million shares.
VietCapital Securities Co analysts said yesterday's session would decide the market trend. "It could open the door for more downside, with the next support level being at 389.50 points," said the company's head of research, Marc Djandji.
Investors still had lots of cash on the sidelines waiting to be invested in the market, but they were waiting for the right time, Djandji said. — VNS