boiman
21-11-2008, 07:22 PM
Share prices fell sharply on Nov. 20 on the Ho Chi Minh Stock Exchange, despite significantly improved liquidity.
The VN-Index tumbled 11.15 points, or 3.31 percent, to
close at 325.74. Trading volume rose by 57 percent from a two-month low
on Nov. 19 to 15.3 million shares, with a total revenue of 451.7
billion VND (27 million USD).
“As an exporter, we see great difficulties arising
from the current world financial crisis,” said Vo Truong Thanh,
chairman of the Truong Thanh Furniture Joint Stock Co (TTF). “Profits
from the exports of many enterprises are likely to fall during the next
year due to lowered consumer demand and increased competition.”
Shares of TTF fell by 1.2 percent to close at 16,400 VND in Nov. 20’s trading, on a volume of 6,430 shares traded.
The trading day witnessed 142 losers overall and only
17 gainers, with activity concentrated on some major stocks, with
Sacombank (STB) seeing orders for 3.6 million shares, followed by Hoa
Phat Group (HPG) at 807,000, and Saigon Securities Inc (SSI) at around
700,000.
Foreign investors on Nov. 20 accelerated buys, picking
up 1.5 million shares, while maintaining sales at 1.4 million shares.
Net sales value narrowed to 1 billion VND (60,000 USD) from Nov. 19’s
40 billion VND (2.38 million USD).
Le Hai Tra, a Ho Chi Minh Stock Exchange management
board member, said that depressed prices on the domestic exchange would
work to prevent foreigners from withdrawing capital too hastily.
Perceived opportunities in an emerging economy would also prevent an
investment outflow, he said.
Thanh said the loosening of credit and exchange rates
was needed to solve firms’ difficulties. He suggested commercial banks
offer lending interest rates of around 12 percent to help firms
maintain “normal performance”.
Too late to influence trading, the Bank for Investment
and Development of Vietnam (BIDV) on Nov. 20 announced a new
preferential lending rate of 13 percent, following immediately on a
State Bank of Vietnam move to cut the prime rate to 11 percent,
effective today.
Ho Chi Minh Securities Co general director Johan
Nyvene commented that “interest and exchange rates have been well
controlled in recent months,” But, he said, more was needed to
alleviate concerns about slowing economic growth.
The Government, he said, should stimulate demand
through effective public investments, while companies should
restructure resources, cut costs and focus on long-term development of
core businesses.
In Hanoi on Nov. 20, the HASTC-Index also plunged 3.31
percent to end the day at 106.49, with 128 codes declining and 14
advancing. About 7.5 million shares changed hands for a turnover of
198.8 billion VND (11.8 million USD).
The VN-Index tumbled 11.15 points, or 3.31 percent, to
close at 325.74. Trading volume rose by 57 percent from a two-month low
on Nov. 19 to 15.3 million shares, with a total revenue of 451.7
billion VND (27 million USD).
“As an exporter, we see great difficulties arising
from the current world financial crisis,” said Vo Truong Thanh,
chairman of the Truong Thanh Furniture Joint Stock Co (TTF). “Profits
from the exports of many enterprises are likely to fall during the next
year due to lowered consumer demand and increased competition.”
Shares of TTF fell by 1.2 percent to close at 16,400 VND in Nov. 20’s trading, on a volume of 6,430 shares traded.
The trading day witnessed 142 losers overall and only
17 gainers, with activity concentrated on some major stocks, with
Sacombank (STB) seeing orders for 3.6 million shares, followed by Hoa
Phat Group (HPG) at 807,000, and Saigon Securities Inc (SSI) at around
700,000.
Foreign investors on Nov. 20 accelerated buys, picking
up 1.5 million shares, while maintaining sales at 1.4 million shares.
Net sales value narrowed to 1 billion VND (60,000 USD) from Nov. 19’s
40 billion VND (2.38 million USD).
Le Hai Tra, a Ho Chi Minh Stock Exchange management
board member, said that depressed prices on the domestic exchange would
work to prevent foreigners from withdrawing capital too hastily.
Perceived opportunities in an emerging economy would also prevent an
investment outflow, he said.
Thanh said the loosening of credit and exchange rates
was needed to solve firms’ difficulties. He suggested commercial banks
offer lending interest rates of around 12 percent to help firms
maintain “normal performance”.
Too late to influence trading, the Bank for Investment
and Development of Vietnam (BIDV) on Nov. 20 announced a new
preferential lending rate of 13 percent, following immediately on a
State Bank of Vietnam move to cut the prime rate to 11 percent,
effective today.
Ho Chi Minh Securities Co general director Johan
Nyvene commented that “interest and exchange rates have been well
controlled in recent months,” But, he said, more was needed to
alleviate concerns about slowing economic growth.
The Government, he said, should stimulate demand
through effective public investments, while companies should
restructure resources, cut costs and focus on long-term development of
core businesses.
In Hanoi on Nov. 20, the HASTC-Index also plunged 3.31
percent to end the day at 106.49, with 128 codes declining and 14
advancing. About 7.5 million shares changed hands for a turnover of
198.8 billion VND (11.8 million USD).