VietNamNet Bridge – The 13-day rally of the VN-Index finished
with two declining sessions last week. On the HCM City Stock Exchange, the
VN-Index slid 1.8 per cent over the previous Friday's close to 454.16 points,
while the HNX-Index on the Ha Noi Stock Exchange gained 2.5 per cent to reach
62.05 points.
Trading value in HCM City
averaged VND1.12 trillion (US$53.3 million) per session, dropping 27.1 per cent
from the previous week. Average volume reached 85.6 million shares.
In Ha Noi, the corresponding
figures fetched VND687.87 billion ($32.7 million) and 92.3 million shares,
rising slightly in value while falling in volume.
Penny stocks were more favoured
than blue chips, according to the financial information website vietstock.vn.
The group of large-cap shares lost an overall 3 per cent, while small-cap and
mid-cap shares rose 1.82 and 1.34 per cent respectively.
The market had some
"hot" increases earlier in the week, led by the return of strong
speculative cash. This was the main thrust that helped the market overcome
increased profit taking in large-cap stocks as well as cautious investors
before the higher trading amplitude.
Shares in mining, securities and
real estate companies attracted the most cash flow. Real estate stocks had a
particularly good run, possibly fueled by a lull in recent weeks and the
imminent announcement of policies to help the struggling sector.
However, the stock market quickly
fell in the last trading sessions of the week, as corrections took hold of blue
chips and speculative stocks. With the new increased daily cap of 7-10 per cent
(instead of 5-7 per cent) in HCM City and Ha Noi, some shares might have grown
20-30 per cent.
On Friday, investor caution made
liquidity decline remarkably compared to earlier in the week. The positive note
was that the downtrend was narrowed due to more active trading on leading
stocks such as insurer Bao Viet (BVH), Sacombank (STB) and Vietcombank (VCB) on
the southern exchange and PetroVietnam Construction Co (PVX) and Sai Gon-Ha Noi
Bank (SHB) on the northern exchange. Foreign investors concluded the week as
net buyers on both bourses, picking up a combined margin of over VND390 billion
($18.5 million).
Trading this week will be likely
affected by some business operation information.
In the fourth quarter of last
year, at least 15 businesses reported losses, including several securities
firms, and four directors and chairmen of brokerages were arrested for fraud.
The aggregate profit of banks
last year almost halved compared to 2011, reaching VND28.6 trillion ($1.3
billion), and most lenders failed to meet their annual targets.
Bao Viet Securities Co analysts
predicted the market would continue to decline with some dramatic slumps.
"Factors such as the
differentiation between shares based on business operation result or economic
policies, in fact, were reflected during the recent period," they said.
Other impacts might not be strong enough to help the market back to growth in
the short term.
Beginning today, changes to the
VN30 have been applied, with rubber company Casumina (CSM) and PetroVietnam Low
Pressure Gas Distribution (PGD) replacing real estate shares Tan Tao (ITA) and
Tu Liem (NTL).
Source: VNS
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