Economic woes undermine shares

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VietNam News English - 45 month(s) ago 1 readings

Stocks continued shedding value on both national stock markets yesterday as economic concerns continued to trouble investors. On the HCM City Stock Exchange, the VN-Index lost 2.8 per cent to close at 470.02 points, with 277 out of 285 listed shares posting declines.

HA NOI — Stocks continued shedding value on both national stock markets yesterday as economic concerns continued to trouble investors.

On the HCM City Stock Exchange, the VN-Index lost 2.8 per cent to close at 470.02 points, with 277 out of 285 listed shares posting declines. Trades continued to be moderately active, however, totalling VND1.1 trillion (US$50.7 million) on a volume of just over 52 million shares.

Blue chips saw heavy losses, including insurer Bao Viet Holdings (BVH), down 5 per cent; Phu My Fertilisers (DPM) and PetroVietnam Finance (PVF), each down 4.9 per cent; and conglomerate Masan Group (MSN), down 4.6 per cent.

The few gainers on the day included Vinh Son Song Hynh Hydropower Co (VSH), up 3.3 per cent; Petroleum Equipment Assembly and Metal Structure (PXS), up 3.2 per cent; logistics firm Transforwarding Sharehousing Co (TMS), up 2.4 per cent; Vinpearl Land (VPL), up 2.2 per cent; and food services company Saigon General Services (SVC), up 1.9 per cent.

Nguyen Thanh Hai, a market analyst with a listed brokerage, said that Monday's market correction signalled fading investor expectations of lower interest rates which could help refuel securities investments. The new Government policy to tightened credit growth was also expected to block sources of capital for investment in the markets.

Meanwhile, electricity rate hikes approved for next month were likely to fan inflationary pressures, not ease them, and this had only added to investor skepticism and pessimism, Hai suggested.

A new survey published by the financial news website cafef.vn late Monday showed that over half of investors were now looking to the real estate market for investments, while only 20 per cent were focusing on securities. Remaining investors were concentrating on foreign currency or gold trading.

On the Ha Noi Stock Exchange, the HNX-Index fell for a second day yesterday, closing off by 1.16 per cent to 95.46 points. Volume continued brisk at 41.9 million shares, worth a total of VND662.2 billion ($30.5 million). — VNS

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