Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade BCHUSD, Bitcoin and Cryptocurrencies

BUY & SELL BCHUSD | View BCHUSD News & Updates


Buy Sell BCHUSD, Bitcoin and Cryptocurrencies

Liquidity cushions market fall   2008-10-29 - Viet Nam News

Improved liquidity helped narrow the fall of domestic stock indices yesterday.

Foreign investors continued to be net sellers, selling 4.37 million shares and loading up on 2.1 million units. Net sales value reached nearly VND90.65 billion ($5.5 million).

On the HCM City Stock Exchange, trading volume increased 29 per cent to 17.16 million shares, with a total revenue of VND491.5 billion (US$29.78 million).

The VN-Index lost 6.48 points or just 1.97 per cent to close at 322.8.

The southern market saw 28 gainers and 127 losers by the end of yesterday.

Sacombank (STB) saw the most action of the day with orders for 3.25 million shares, followed by Hoa Phat Group (HPG) with 1.43 million units.

Foreign investors continued to be net sellers, selling 4.37 million shares and loading up on 2.1 million units. Net sales value reached nearly VND90.65 billion ($5.5 million).

Quach Manh Hao, deputy general director of Thang Long Securities, said in a report that foreign investors' net sales played a significant part in pushing the domestic stock market down over the past few weeks.

Hao said foreigners likely withdrew capital from the local exchange to support their parent companies which were affected by the world financial crisis, or shifted to other investment channels such as property.

He also noted that they may be waiting for stock prices to decline even further.

"Most foreign investment funds in Viet Nam are closing funds, and often committed to long-term investment, so there is little chance that these funds will draw out of the market," the report said. "They can even efficiently support the market in the coming months."

Dragon Capital investment fund director Dominic Scriven affirmed that for long-term [institutional] investors like Dragon Capital and VinaCapital, temporary sales were made to reorganise their investment portfolios, but that they weren't planning to flee the market.

"We believe that Vietnamese stock prices are very attractive," Hao said. "Share prices have fallen by around 40 per cent since the beginning of last month, much sharper than on other markets."

That's steeper than an average of 34 per cent in European Union markets and 30 per cent in the Asia Pacific, according to Hao.

EuroCapital Securities Co said in a report that while world stock markets were performing poorly, foreign investors' accelerated sales of bonds had pulled down the domestic market. Net bond sales have been around VND7 trillion ($424.2 million) so far this month.

Net bond sales, however, have recently been declining. According to the report, the figure was VND1 trillion ($60.6 million) last Wednesday but around VND200 billion ($12.1 million) last Friday.

Local press quoted Nguyen Son, director of the State Securities Commission's Market Management Department, as saying that the commission would take measures to prevent the market from a free-fall if it continued to slide.

The Ha Noi Securities Trading Centre, meanwhile, witnessed 48 gainers and 83 losers.

The HASTC-Index slid slightly 0.14 points or 01.3 per cent to end at 105.05. Trade volume increased 28 per cent to reach 9.78 million shares, worth around VND220 billion ($13.3 million).

Asia Commercial Bank (ACB) was the most active on the northern bourse with 1.1 million shares traded, followed by Kim Long Securities (KLS) with 966,000 shares, PetroVietnam Insurance (PVI) with 700,000 units and Petroleum Technical Services Corp (PVS) with 606,000.



Other news

BUSINESS IN BRIEF 29/10   2008-10-29

Animal feed prices cut into farmers’ profits   2008-10-29

Exports of agro-forestry-fishery products rocket in value   2008-10-29

Ministries considering raising import tax, not slashing petrol price   2008-10-29

FDI hits almost $60bil so far this year   2008-10-29

Vietnam’s retail market attracts foreign investors   2008-10-29

Labourers in automobile industry losing jobs   2008-10-29

Russia, Vietnam sign deals on energy and alumina   2008-10-29

Japanese steelmaker to buy stake in Korean firm’s Vietnam mill   2008-10-29

Stocks continue to flounder   2008-10-29

Industry-construction most attractive to foreign investors   2008-10-28

SMEs eye opportunities in software processing industry   2008-10-28

Is deflation now really the biggest concern?   2008-10-28

Phone tariffs cut by up to 20%   2008-10-28