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Stocks fall on both exchanges despite improving conditions

Update: April, 23/2012 - 10:41

HA NOI — Stocks lost value on both national stock exchanges while data last week showed the economic conditions to be improving.

Ha Noi's CPI in April was reported to decline for the first time in two years, down 0.03 per cent from the previous month. Minister of Planning and Investment Bui Quang Vinh forecast the nation's CPI this month would increase just 0.06 per cent.

In the first quarter, the balance of payment reached a surplus of nearly US$2 billion and the state's foreign currency reserve increased by an equivalent of nine weeks of imports. Viet Nam also enjoyed a trade surplus of $220 million in the first three months of this year.

Data was positive but the time of publication focused on the last trading day which did not improve investor psychology, said FPT Securities Co Nguyen Ngoc Tuan.

"This is also a sensitive time while the National Assembly is holding regular meetings to make important decisions to restructure the economy and financial market," Tuan said, reckoning the last week's market fall was essential and more of technical correction.

The market had gone through a long rising streak which lifted the stock indices. This made investors more cautious and decide to sell in order to realise cash profits, said analysts on the financial website

They said the first-quarter business results of the leading stocks such as banks, securities companies and other blue chips were gradually revealed, which also made the market lose its rising momentum, particularly in Ha Noi.

"The selling on good news strategy is being applied again," they said.

On the Ha Noi Stock Exchange, the HNX-Index fell 3.26 per cent over the course of last week, with three of five sessions decreasing, and finished Friday at 77.75 points. The trading value declined slightly over the previous week, averaging nearly VND1.08 trillion ($51.4 million) on a volume of 98.8 million shares per day.

Meanwhile on the HCM City Stock Exchange, the VN-Index gave up just 0.54 per cent, closing Friday at 465.72 points. Market volume increased 11.6 per cent over the previous week, reaching 120.5 million shares per session, worth a daily turnover of almost VND2 trillion ($94.6 million).

19 of 25 sectors gained in value, led by mineral shares with a gain of 7.4 per cent and securities shares up 6.3 per cent. Hot shares of construction, real estate companies and banks also increased from 3-5 per cent.

Ha Nam Minerals (KSH), Nari Hamico Minerals (KSS) and Tay Bac Minerals Investment (KTB) were the biggest gainers with prices rising around 19 per cent.

No positive information around these shares was revealed last week but there was talk of the possibility that good business results of these companies this year could induce speculative cash flows.

Foreign investors continued to be net buyers on the Ha Noi exchange but on a narrow value of VND27.5 billion ($1.3 million), focusing on construction giant Vinaconex (VCG) and Kim Long Securities Co (KLS).

Meanwhile, they were net sellers of up to VND695.2 billion ($33.1 million) worth of shares on the HCM City exchange, mainly due to the net sale of Sacombank (STB) which was worth VND810.7 billion ($38.6 million).

"After three consecutive declining sessions, the market will likely tread water on the first trading day of this week," FPT Securities Co's Nguyen Ngoc Tuan said, predicting money flows could shift to shares which reported good business results and promised high dividend rate. — VNS

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