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

Local market catches global cold   2010-06-14 - Viet Nam News

Instability on global markets continued to impact domestic shares last week, which saw volatile indices and sluggish trading.

After dipping below the 500-mark at mid week, the VN-Index managed to just regain on Friday, closing the week at 504.29 - a cumulative decline on the week of nearly 1.2 per cent.

The value of trades on the HCM City Stock Exchange fell by an even more dramatic 8 per cent from the previous week, to a daily average of just under VND1.2 trillion (US$62.6 million) and an average volume of about 37.3 million shares.

Sacombank (STB) was the most-active share on the week, with a total volume of 10.6 million shares, followed by Ocean Group (OCG) with 8.6 million and Sai Gon Securities Inc (SSI) with 8.5 million.

On the Ha Noi Stock Exchange, the HNX-Index also dipped 2.75 per cent over the course of five sessions to end the week at 157.23 points. Volumes average 27.4 million shares per day, for an average value of VND857 billion ($45 million).

PetroVietnam Construction (PVX) was the most-active share on the northern bourse, with over 15 million traded.

"The shortage of good news on the domestic market drove investors to turn their attention overseas, making even clearer the domestic markets as a reflection of the global situation," said FPT Securities Co analyst Tran Quang Vinh.

With worries increasing that the world might be facing a "double-dip" recession, and economic data yet to confirm the domestic economic recovery, business performance alone would hardly support busier trading, Vinh said.

Vinh noted Thursday and Friday sessions last week during which blue chips generated heavier trading.

"If this phenomenon continues this week, the VN-Index might rally in the short term," he said, forecasting that the Index would range between 495 and 525 points this week.

Investors had begun paying greater attention to a long-term consolidation, Vinh said, adding, "In this context, capital will continue to flow toward small- and mid-cap stocks that promise a quick profit."

Nguyen Hac Hai, head of investment analysis for Viet Dragon Securities Co, said that domestic investors remained obsessed with the 2008 economic crisis, driving them to trade defensively or avoid the market during the current international debt crisis.

"But the reaction is temporary," Hai said.

The debt crisis has also contributed to cooling down inflationary fears, which would further benefit the market by encouraging more open monetary policies, he said.

Le Ba Hoang Quang of Sacombank Securities Co said that impact of EU debt crisis to Viet Nam would be minimal. "Exports are believed to be most heavily influenced by this crisis, but Viet Nam exports essential goods so the impact shouldn't be alarming," Quang said.

Other news

BUSINESS IN BRIEF 14/6   2010-06-14

PPP timeframe in sharp focus   2010-06-14

Government to curb imports   2010-06-14

BUSINESS IN BRIEF 14/6   2010-06-14

Vietnam overcoming crisis better than other countries   2010-06-14

Vietnam hardly affected by euro depreciation   2010-06-14

Banks told to control real estate credit tightly   2010-06-14

Vietjet Air still grounded   2010-06-14

US to lend $500 mil for VN infrastructure   2010-06-14

Bankers say they need more time to ease interest rates   2010-06-14

HCMC launches US$20 mil plan to stabilize market   2010-06-13

BUSINESS IN BRIEF 12/6   2010-06-12

Binh Duong real estate heats up   2010-06-12

Three-month delay for electrical safety licence   2010-06-12