Markets slide after late sell-off

[xiuchic]

The stock markets could not retain earlier gains yesterday as a sell-off followed a modest rally led by purchases of shares at low prices.

The VN-Index on the HCM City Stock Exchange shed 0.2 per cent to 386.91 points. Only 66 listed stocks increased, while the other 204 codes retreated or closed unchanged.
Trading value jumped by about 45 per cent over Wednesday's level to VND464.6 billion (US$22 million), and trading volume rose to 28.76 million shares.

Most blue chips tumbled, such as property developer Tan Tao (ITA), insurer Bao Viet (BVH), Military Bank (MBB), Phu My Fertiliser (DPM) and Financial Conglomerate Ocean Group (OGC) losing between 1.1-3.6 per cent and PetroVietnam Finance (PVF) hitting the floor price.
Of the 30 leading shares in terms of capitalisation and liquidity tracked by the VN30, only seven managed to rally.

The index, with only a small boost, ended 1.13 per cent lower at 457.08 points.
On the Ha Noi Stock Exchange, the HNX-Index fell 1.17 per cent, reaching 51.69 points. The number of gainers almost doubled that of losers, while most of the stocks finished yesterday's session unchanged.

Market value, however, climbed 37.7 per cent compared to Wednesday's figure to VND162.5 billion ($7.7 million) on a volume of 27.5 million shares.
The HNX30, representing the northern bourse's top shares, also slid 1.5 per cent to 94.25 points.

The two benchmark indices faced the important psychological levels of 389 and 52.50 points, according to VietCapital Securities Co analysts.

"If the indices exceed these levels with increasing liquidity, investors will buy shares in the short term," said the analysts.

In the medium term, they added, the market would rebound strongly if the VN-Index and HNX-Index passed 400 and 55 points.

Meanwhile, ACB Securities Co analyst Le Huynh Nhut Hai maintained his positive view for the coming sessions. However, Hai told investors to keep a minor ratio of shares due to conflicting signals on coming market trends

[xiuchic]

Shares continued to slide in HCM City yesterday with sluggish trading.

Ending yesterday's session, around 63 per cent of listed stocks on both national stock exchanges traded under par value, and half of them had a price level under VND5,000.
The VN-Index on the HCM City Stock Exchange decreased 0.3 per cent to 385.71 points compared to the previous day's close.

The value of trades reached only 64.9 per cent of Thursday's level, hitting VND301.44 billion (US$14.3 million) as trading volume fetched 22.6 million shares.

Of the 30 largest shares in terms of capitalisation and liquidity, decliners outnumbered gainers by 12-10. The VN30 tracking these stocks lost 0.3 per cent to reach 455.67 points.
Notably, Eximbank (EIB) shed 0.7 per cent yesterday despite positive ratings by Standard & Poor's, which assigned it a B+ long-term debt rating and "stable" outlook.

The rating agency also said Viet Nam's financial system was still in its developing stage, since the legal framework was unfinished. The risks of economic imbalances and credit risks were both high, indicating that credit was growing too fast compared to income.

However, the market situation became better yesterday afternoon when investors bought a number of shares at rising prices.

Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index advanced by 0.23 per cent, reaching 51.81 points.

Gainers overwhelmed losers by 99-76, while the majority of shares closed unchanged.
Market value, however, dropped 30 per cent over Thursday's session to just VND113.63 billion ($5.4 million) on a volume of 19.9 million shares.

Blue chips in Ha Noi also boosted the HNX30 to 94.52 points - a 0.3 per cent increase.
Transactions on the northern bourse were mostly concentrated in Sai Gon - Ha Noi Bank (SHB) and property developer Sacomreal (SCR), as the two codes saw 9.3 million shares changing hands.

Earnings results of many enterprises have already been announced, leading to an "information-free" trading week, according to Bao Viet Securities Co analysts Pham Tien Dung and Tran Hai Yen.

"But the market may rebound late this month and early next month as exchange-traded funds revise their portfolios," they wrote in a note yesterday