Monday, February 24 2020

VietNamNews

Shares narrow losses, fewer gold buyers on the God of Wealth Day

Update: February, 03/2020 - 19:54

 

A customer buys gold at a Doji shop in Hà Nội. The current coronavirus concerns as well as higher gold prices have led to fewer customers. — VNA/VNS Photo Danh Lam

HÀ NỘI – Investors helped cushion the fall on the Vietnamese stock market on Monday amid steep declines across the Asia.

On the Hồ Chí Minh Stock Exchange (HOSE), the VN-Index closed down 0.91 per cent to 928.14 points. It lost more than 3 per cent in the morning.

On the Hà Nội Stock Exchange, the HNX-Index narrowed morning losses of 2.4 per cent to 1 per cent to end the session at 101.31 points.

A total of 341.5 million shares worth VNĐ6.44 trillion (US$276.3 million) were traded on the two markets.

Vietnamese stocks performed well given widespread slumps across Asia amid rising concerns over the outbreak in China, with $420 billion wiped out from the Chinese market on Monday when stocks sank nearly 8 per cent.

“The panic pulled the VN-Index below the psychological threshold of 900 points. However, in the afternoon session, thanks to the recovery of some key blue chips such as BID, CTG, HPG, NVL, the market's further decline was prevented,” a BIDV Securities Co’s daily report said.

Only five of the top 30 shares by market value and liquidity on the HOSE gained, while 22 lost value.

Lender BIDV (BID) and Vietinbank (CTG) rose by more than 3 per cent while steelmaker Hòa Phát Group (HPG) and property developer Novaland Investment Group (NVL) increased around 1 per cent.

Big losers included insurer Bảo Việt Holdings (BVH), PV Gas (GAS), Vietjet (VJC), Petrolimex (PLX), PV Power (POW), PetroVietnam Fertiliser & Chemicals (DPM), Coteccons Construction (CTD) and Saigon Securities Inc (SSI), with losses of between 3-6 per cent.

BIDV Securities Co’s analysts predicted a strong outbreak of influenza would be a risk for the market in the short term with no effective control measures available.

Investors should be cautious and closely follow developments of the epidemic, they said.

Fewer gold buyers on God of Wealth Day

Though jewellers had stockpiled 'lucky' gold products for God of Wealth Day which falls on February 3 this year, most customers stayed away out of fear for coronavirus.

According to legend, the God of Wealth returns to heaven on the 10th day of the first lunar month, so people traditionally buy gold on that day to ensure good luck and prosperity throughout the year. In recent years, people have been queuing up from 3-4am to buy ‘lucky’ gold.

Together with ordinary items, products for sale include charm bracelets made of 24k and 18k gold. Items in the shape of animals are also popular.

Dương Anh Tuấn, deputy general director of DOJI, said that in preparation for the day, his firm had prepared 280,000 products, an increase of 30 per cent.

However, the coronavirus as well as higher gold prices had caused a slump in customer numbers. To prevent exposure to crowds, some customers bought products last weekend.

On Monday morning, gold prices in the city hit nearly VNĐ45 million ($1,945) per tael (1.2 ounces), up VNĐ7.5 million per tael compared to God of Wealth Day in 2019.

In the afternoon, it declined more than VNĐ500,000 per tael at big businesses like SJC, DOJI and Bảo Tín Minh Châu, as global gold prices dipped after hitting a near four-week high after China’s central bank cut reverse repo rates and injected liquidity into markets to help support an economy hit by the coronavirus outbreak. — VNS

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