Thursday, August 16 2018


Lower inflation fails to lift shares

Update: July, 25/2012 - 09:22

HA NOI — Although the nation's monthly consumer price index continued to slide, shares still lost ground yesterday.

The General Statistics Office announced yesterday CPI this month decreased 0.29 per cent over last month. However, "the market shifted to a negative trend very fast," said BIDV Securities Co analyst Hoang Anh Tuan. Demand for shares was only at a low level, he added.

"With such movements, holding shares is increasingly risky."

Reaching 415.63 points, the VN-Index on the HCM City Stock Exchange edged down 1.5 per cent.

Around three-quarters of the listed stocks retreated.

Most blue chips tumbled; notably, insurer Bao Viet Holdings (BVH) and HCM City Infrastructure Investment Co (CII) bottomed out. Of the 30 shares tracked by the VN30, only software giant FPT (FPT) added 4.5 per cent. The index lost 0.9 per cent to 491.34 points.

The southern bourse's overall market value fell 16 per cent to VND659.4 billion ($31.4 million), as trading volume reached only 88.3 per cent of Monday's level, standing at 44.8 million shares. On the Ha Noi Stock Exchange, the HNX-Index slid 2.3 per cent compared to the previous day's close, reaching 69.84 points.

Losers largely overwhelmed gainers by 187-54.

Trading slightly declined to a value and volume of VND478.9 billion ($22.8 million) and 51.4 million shares.

The HNX30, tracking Ha Noi's top shares, decreased 3.7 per cent to 132.31 points.

PetroVietnam Construction Co (PVX) saw a surge in trading volume to 9.3 million shares. It closed yesterday at its floor price of VND8,900 per share.

The company reported a huge loss of nearly VND300 billion ($14.2 million) in the second quarter of this year due to soaring financial and corporate management costs. Accumulated for the first six months of this year, PVX lost VND293 billion ($13.9 million) while making a profit of VND87.46 billion ($4.1 million) in the same period last year.

The results of a recent inspection conducted by the oil and gas giant PetroVietnam showed that PVX was facing a financial imbalance, with some of its subsidiaries at risk of bankruptcy.

At that time, PVX had a charter capital of VND2.5 trillion ($119 million) and short-term liability of over VND9.6 trillion ($457 million).

The imbalance was caused by the use of short-term funds to finance long-term investment. In addition, macro-economic problems resulted in inefficient investments in its subsidiaries and affiliates, especially in real estate firms, while it was hard for PetroVietnam's construction arm to sell stakes in these units.

"The business environment in the second quarter really disappointed investors," noted BIDV Securities Co analysts. — VNS

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