HCMC shares down again as investor confidence dries up

[boiman]

The Ho Chi Minh City stock market lost for a sixth
straight day as the VN-Index edged closer to the 300-point mark that
analysts seem expect it will breach sooner or later.


The index of 166 companies and four closed-end funds
opened in positive territory to finish the first session 1.2 percent
higher at 322.79.


Nguyen Manh Toan, deputy CEO of HCMC-based VinaGlobal
Securities Corporation, said the strong opening was a result of the
higher US market close last Friday


But the index dropped in the next two sessions to
close at 317.93, or 0.32 percent lower, partly because losses on some
Asian markets dampened investors’ confidence, Toan said.


Asian stock markets Monday were down amid uncertainty
over the world economy despite a US government rescue pledge for global
banking giant Citigroup.


Hong Kong shares closed 1.6 percent down, while Seoul shed 3.3 percent, Singapore dropped 2.5 percent and Taipei 0.25 percent.


Shanghai was 2.6 percent lower, although Sydney
recovered early losses to finish the day 0.3 percent up. Tokyo was
closed for a public holiday.


Trading volume on the Ho Chi Minh Stock Exchange
Monday was 13.3 million shares as 73 stocks fell, 69 advanced and 28
remained unchanged.


Toan expected the VN-Index to be range -bound between
310 and 330 this week, adding investors’ confidence would get a boost
if global stock prices posted two or three straight days of gains.


But Nguyen Dinh Phong, brokerage services director of
VNDirect Securities Corp., said: “Given investors’ negative reaction in
today’s trading, it is safe to say the market will go below 300 points
soon.”


“Investors are losing confidence in the market. It is
a very worrying sign. They reacted negatively to good news about the
interest rate cut and the rebound in the US market last week.


“The reason investors are turning their backs on the
market is the lack of transparent information about the country’s
economy. They cannot access reliable data about the unemployment rate,
consumer confidence, banks’ bad debts, decline in exports, companies’
performance and other critical economic indicators.


“In other words, the information we have is
insufficient to paint a picture of Vietnam’s economy. Unless they see
that the value of shares truly reflect the health of the economy, they
will be reluctant to buy.”


Hanoi-based FPT Corporation, a software producer and
mobile phone distributor, rose VND2,000, or 3.96 percent, to close at
VND52,500. The company’s pretax profit in the first 10 months of this
year was US$60.9 million, or a year-on-year 30 percent increase,
according to a statement posted on the stock exchange’s website last
week.

[dau_dat]

[^o)]

[quote user="boiman"]The Ho Chi Minh City stock market lost for a sixth
straight day as the VN-Index edged closer to the 300-point mark that
analysts seem expect it will breach sooner or later.


The index of 166 companies and four closed-end funds
opened in positive territory to finish the first session 1.2 percent
higher at 322.79.


Nguyen Manh Toan, deputy CEO of HCMC-based VinaGlobal
Securities Corporation, said the strong opening was a result of the
higher US market close last Friday


But the index dropped in the next two sessions to
close at 317.93, or 0.32 percent lower, partly because losses on some
Asian markets dampened investors’ confidence, Toan said.


Asian stock markets Monday were down amid uncertainty
over the world economy despite a US government rescue pledge for global
banking giant Citigroup.


Hong Kong shares closed 1.6 percent down, while Seoul shed 3.3 percent, Singapore dropped 2.5 percent and Taipei 0.25 percent.


Shanghai was 2.6 percent lower, although Sydney
recovered early losses to finish the day 0.3 percent up. Tokyo was
closed for a public holiday.


Trading volume on the Ho Chi Minh Stock Exchange
Monday was 13.3 million shares as 73 stocks fell, 69 advanced and 28
remained unchanged.


Toan expected the VN-Index to be range -bound between
310 and 330 this week, adding investors’ confidence would get a boost
if global stock prices posted two or three straight days of gains.


But Nguyen Dinh Phong, brokerage services director of
VNDirect Securities Corp., said: “Given investors’ negative reaction in
today’s trading, it is safe to say the market will go below 300 points
soon.”


“Investors are losing confidence in the market. It is
a very worrying sign. They reacted negatively to good news about the
interest rate cut and the rebound in the US market last week.


“The reason investors are turning their backs on the
market is the lack of transparent information about the country’s
economy. They cannot access reliable data about the unemployment rate,
consumer confidence, banks’ bad debts, decline in exports, companies’
performance and other critical economic indicators.


“In other words, the information we have is
insufficient to paint a picture of Vietnam’s economy. Unless they see
that the value of shares truly reflect the health of the economy, they
will be reluctant to buy.”


Hanoi-based FPT Corporation, a software producer and
mobile phone distributor, rose VND2,000, or 3.96 percent, to close at
VND52,500. The company’s pretax profit in the first 10 months of this
year was US$60.9 million, or a year-on-year 30 percent increase,
according to a statement posted on the stock exchange’s website last
week.

[/quote]

[dau_dat]

[quote user="dau_dat"]But Nguyen Dinh Phong, brokerage services director of
VNDirect Securities Corp., said: “Given investors’ negative reaction in
today’s trading, it is safe to say the market will go below 300 points
soon.”


“Investors are losing confidence in the market. It is
a very worrying sign. They reacted negatively to good news about the
interest rate cut and the rebound in the US market last week.


“The reason investors are turning their backs on the
market is the lack of transparent information about the country’s
economy. They cannot access reliable data about the unemployment rate,
consumer confidence, banks’ bad debts, decline in exports, companies’
performance and other critical economic indicators.


“In other words, the information we have is
insufficient to paint a picture of Vietnam’s economy. Unless they see
that the value of shares truly reflect the health of the economy, they
will be reluctant to buy.”


Hanoi-based FPT Corporation, a software producer and
mobile phone distributor, rose VND2,000, or 3.96 percent, to close at
VND52,500. The company’s pretax profit in the first 10 months of this
year was US$60.9 million, or a year-on-year 30 percent increase,
according to a statement posted on the stock exchange’s website last
week.

[/quote]

[dau_dat]

[quote user="dau_dat"]rs are turning their backs on the
market is the lack of transparent information about the country’s
economy. They cannot access reliable data about the unemployment rate,
consumer confidence, banks’ bad debts, decline in exports, companies’
performance and other critical economic indicators.


“In other words, the information we have is
insufficient to paint a picture of Vietnam’s economy. Unless they see
that the value of shares truly reflect the health of the economy, they
will be reluctant to buy.”


Hanoi-based FPT Corporation, a software producer and
mobile phone distributor, rose V

[/quote]