boiman
06-10-2008, 06:10 PM
Investor concerns about long lasting difficulties on
the global financial markets drove the domestic stock indices down last
week.
HCM City Stock Exchange's VN-Index lost 31.67 points over the week, or 6.5 per cent, to close at 452.14.
Liquidity declined, with trading volume at around
14.29 million shares per day, down 34 per cent over the previous week.
Daily turnover averaged VND522.78 billion (US$31.68 million), a fall of
32.3 per cent.
On the Ha Noi Securities Trading Centre, the HASTC-Index ended at 152.02 after losing 8.29 points or 5.1 per cent over the week.
Around 9.4 million shares changed hands per day, a
fall of 15.2 per cent over the previous week. Daily revenue reached
VND339.3 billion ($20.56 million), down 12.2 per cent on the pervious
week's average.
The indexes didn't rebound until last Thursday, when
the US Senate endorsed a revised version of the $700 billion bailout of
the financial industry, putting pressure on the House of
Representatives to approve the plan that political and financial
leaders called crucial to averting economic catastrophe.
But share prices dropped again on Friday with
investors fearing that the US financial rescue plan might not be enough
to prevent the US economy and the rest of the world from slowing down
further.
Foreign investors were net buyers last week with net purchases reaching VND36 billion ($2.2 million).
Transaction levels for foreigners, however, fell
significantly with about 2 million shares bought and 1.9 million units
sold a day. Purchases dropped by 60 per cent over the previous week,
while sales fell by 32 per cent.
"Last week showed investors' clear reservations in
front of mixed information," said Nguyen Tuan, an analyst from FPT
Securities' Analysis Department.
In the first nine months of the year, total registered
foreign direct investment (FDI) reached $57 billion. Performed FDI had
reached $8.1 billion so far this year, higher than last year's total.
This helped compensate for the country's trade deficit, which had
declined in the last few months, he said.
National foreign currency reserves reached around $23
billion, about $1.6 billion higher than figures posted at the end of
the second quarter, said State Bank of Viet Nam (SBV) Governor Nguyen
Van Giau.
The rise in foreign reserves was the result of the
SBV's decision to buy back US dollars, as well as the decline in import
turnover in the third quarter, according to Tuan.
Three leading local petroleum importers, including the
Viet Nam National Petroleum Corporation, last Wednesday cut their
kerosene prices by VND1,000 in a move to support production activities;
while banks gave lending incentives to small- and medium-sized
enterprises and exporters to boost the private sector.
The SBV last week announced that outstanding loans for
real estate totalling VND115 trillion (nearly $7 billion) accounted for
9.5 per cent of the total commercial bank loans. Most concerns are now
with large property projects in the suburbs with their market prices
having fallen sharply this year.
This would cause problems for commercial banks in the coming months as the maturity dates of the loans were coming, said Tuan.
"The economic situation is getting better but it's
likely mat the market will stay level in the medium term," Tuan said,
adding that investor confidence was not strong.
"Hopes still remain over the rescue plan for the US
financial market and domestic listed firms' third-quarter business
results," he said. "This will make this week a testing time for
investor sentiment".
Tuan expects the VN-Index to range between 445 and 470
points this week. "But it could fall to around 400 if the market is not
supported by positive news," he added.
Director of EuroCapital's Analysis Department Ngo Van
Minh said it was unlikely that the market would go up until mid-October
when companies' third-quarter business results were announced.
He added that the US$700 billion plan signed into law last Friday made investors feel more secure.
Ken Tai Chee Ming, Senior securities analyst at Kim
Eng Corporation, said the US financial crisis would have no great
impact on the domestic economy between now and the end of the year.
But Ken Tai said that due to fluctuations in the
global financial markets, disbursement of foreign funds would become
sluggish in the coming months.
Chairman of the State Securities Commission Vu Bang
said last Friday that the commission was proposing anti-crisis
proposals to the Government for the local stock exchange to minimise
the negative effects of a US recession.
the global financial markets drove the domestic stock indices down last
week.
HCM City Stock Exchange's VN-Index lost 31.67 points over the week, or 6.5 per cent, to close at 452.14.
Liquidity declined, with trading volume at around
14.29 million shares per day, down 34 per cent over the previous week.
Daily turnover averaged VND522.78 billion (US$31.68 million), a fall of
32.3 per cent.
On the Ha Noi Securities Trading Centre, the HASTC-Index ended at 152.02 after losing 8.29 points or 5.1 per cent over the week.
Around 9.4 million shares changed hands per day, a
fall of 15.2 per cent over the previous week. Daily revenue reached
VND339.3 billion ($20.56 million), down 12.2 per cent on the pervious
week's average.
The indexes didn't rebound until last Thursday, when
the US Senate endorsed a revised version of the $700 billion bailout of
the financial industry, putting pressure on the House of
Representatives to approve the plan that political and financial
leaders called crucial to averting economic catastrophe.
But share prices dropped again on Friday with
investors fearing that the US financial rescue plan might not be enough
to prevent the US economy and the rest of the world from slowing down
further.
Foreign investors were net buyers last week with net purchases reaching VND36 billion ($2.2 million).
Transaction levels for foreigners, however, fell
significantly with about 2 million shares bought and 1.9 million units
sold a day. Purchases dropped by 60 per cent over the previous week,
while sales fell by 32 per cent.
"Last week showed investors' clear reservations in
front of mixed information," said Nguyen Tuan, an analyst from FPT
Securities' Analysis Department.
In the first nine months of the year, total registered
foreign direct investment (FDI) reached $57 billion. Performed FDI had
reached $8.1 billion so far this year, higher than last year's total.
This helped compensate for the country's trade deficit, which had
declined in the last few months, he said.
National foreign currency reserves reached around $23
billion, about $1.6 billion higher than figures posted at the end of
the second quarter, said State Bank of Viet Nam (SBV) Governor Nguyen
Van Giau.
The rise in foreign reserves was the result of the
SBV's decision to buy back US dollars, as well as the decline in import
turnover in the third quarter, according to Tuan.
Three leading local petroleum importers, including the
Viet Nam National Petroleum Corporation, last Wednesday cut their
kerosene prices by VND1,000 in a move to support production activities;
while banks gave lending incentives to small- and medium-sized
enterprises and exporters to boost the private sector.
The SBV last week announced that outstanding loans for
real estate totalling VND115 trillion (nearly $7 billion) accounted for
9.5 per cent of the total commercial bank loans. Most concerns are now
with large property projects in the suburbs with their market prices
having fallen sharply this year.
This would cause problems for commercial banks in the coming months as the maturity dates of the loans were coming, said Tuan.
"The economic situation is getting better but it's
likely mat the market will stay level in the medium term," Tuan said,
adding that investor confidence was not strong.
"Hopes still remain over the rescue plan for the US
financial market and domestic listed firms' third-quarter business
results," he said. "This will make this week a testing time for
investor sentiment".
Tuan expects the VN-Index to range between 445 and 470
points this week. "But it could fall to around 400 if the market is not
supported by positive news," he added.
Director of EuroCapital's Analysis Department Ngo Van
Minh said it was unlikely that the market would go up until mid-October
when companies' third-quarter business results were announced.
He added that the US$700 billion plan signed into law last Friday made investors feel more secure.
Ken Tai Chee Ming, Senior securities analyst at Kim
Eng Corporation, said the US financial crisis would have no great
impact on the domestic economy between now and the end of the year.
But Ken Tai said that due to fluctuations in the
global financial markets, disbursement of foreign funds would become
sluggish in the coming months.
Chairman of the State Securities Commission Vu Bang
said last Friday that the commission was proposing anti-crisis
proposals to the Government for the local stock exchange to minimise
the negative effects of a US recession.