Vietnam Daily News

Shares continue downward slide

Written by Dailynews.vn Wednesday, 14 December 2011 22:44

Shares continued to slide on both stock exchanges on Dec. 13 with the VN-Index closing off 0.95 percent to 371.75 points while the HNX-Index lost 1.21 percent to 60.62 points.

Following the six-day losing streak on the HCM Stock Exchange, trading volume decreased 8 percent to only 34.6 million shares, worth 534.78 billion VND (25.5 million USD).

Property developer Vincom (VIC) hit the daily limit of 5 percent but still failed to rescue the Index as six of the 10 leading shares by capitalisation slumped. Vietinbank (CTG), and Phu My Fertiliser (DPM) led the slide with losses of 4.4 percent and 4 percent, respectively.

Decliners overwhelmed advancers by 145-85 overall. The country’s fourth largest listed bank Sacombank (STB) was again the most active code on the HCM City market with 1.52 million shares changing hands while closing unchanged at 14,800 VND (0.70 USD).

On the Hanoi Stock Exchange, losers were almost four times higher than gainers, with the volume of the day’s trades declining 5 percent over the previous trading session, totalling just 24.8 million shares, worth 204.7 billion VND (9.7 million USD).

Orient Securities Co (ORS) became the most heavily traded share on the northern bourse on Dec. 13 with a volume of 1.82 million while closing at a floor price of only 2,000 VND a share for eight sessions in a row.

This week, the central bank will take its first steps in restructuring the banking system and introducing solutions for rescuing the real estate and securities market. However, Pham Van Khoa, of Bao Viet Securities Co, said it will take time to consider whether this information will make a positive impact on financial market.

“Although the market doesn’t give much cause for short-term optimism, long-term investors may consider the possibility to jump in the market if the downturn will continue,” analysts with BIDV Securities Co wrote in a report.

They reasoned that even though interest rates have yet to decrease, the downtrend is clear for the time being and there are no reasons to fear higher inflation next year.

“The problem is only the time. Banks have yet to cut interest rates, primarily due to the concerns that this can diminish policy efficiency and reduce people’s confidence in the oversight authority,” they wrote, adding that as prices are too low now, expected profits relative to risks are quite balanced.

Foreign investors continued to unload shares on Dec. 13, responsible for a net sell worth 11.65 billion VND (554,800 USD) in HCM City , but they concluded as net buyers in Hanoi , picking up over 2 billion VND (99,500 USD) worth of shares./.

Source: en.vietnamplus.vn/Home/Shares-continue-downward-slide/201112/22940.vnplus