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VietNamNews

Shares dip as exhange rate rises

Update: March, 06/2013 - 00:00

Investors trace market fluctuations at IRS stock trading floor in Ha Noi. — VNA/VNS Photo Tuan Anh

HA NOI (VNS)— Shares extended Monday's losses during yesterday's session.

On the HCM City Stock Exchange, the VN-Index declined 1.4 per cent to 462.12 points.

Market sentiment remained the same, with 20 per cent of the listed stocks losing value while over 60 per cent closed unchanged.

Trading value dropped 30.4 per cent over the previous day's level to VND779.4 billion (US$37.1 million) as trading volume reached 59.8 million shares.

Among the 30 leading shares in terms of capitalisation and liquidity, only PetroVietnam Low Pressure Gas Distribution Co (PGD), Phu Nhuan Jewelry (PNJ), Sacombank (STB) and Vinamilk (VNM) managed to increase, while Military Bank (MBB) stayed unchanged.

The VN30, tracking the performance of these shares, fetched 528.29 points: a decline of 1.17 per cent.

On the Ha Noi Stock Exchange, the HNX-Index fell further by 2.3 per cent, reaching 59.30 points.

Decliners outnumbered advancers by 144-53.

Market value and volume reached only around 70 per cent of Monday's trades, standing at VND443.8 billion ($21.1 million) and 62.6 million shares, respectively.

The HNX30, tracking the northern bourse's top shares, hit 113.13 points – a 2.8 per cent decrease.

Bottom fishing started as the two indices neared their respective resistances of 450 and 58.5 points, Bao Viet Securities Co analysts Nguyen Xuan Binh and Tran Hai Yen wrote in a note. They hoped "buying and selling of shares would balance out in the coming sessions, preparing a new rally."

Meanwhile, exchange rates looked to be increasing, the analysts added. Yesterday exchange rates at banks rose by 20-30 Vietnamese dong compared to the previous day's rate of VND21,020 against one US dollar.

On the free market, the US dollar price also increased, at times exceeding VND21,200.

"We believe the volatility of the dollar was largely due to speculation rather than the scarcity of foreign currency," Binh and Yen said.

Meanwhile, Viet Nam had an abundant foreign exchange reserve estimated at around 16-17 weeks of imports. According to the analysts, the dong was not likely to decrease in value. — VNS

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