Interest, inflation weigh on shares

Published: 15/05/2011 05:00



VietNamNet Bridge - Stocks lost value on meagre trading last week on the nation’s stock exchanges.

On the HCM City Stock Exchange, the average volume of trades was approximately 20 million shares, about 85 per cent of the preceding week’s figure, and the average daily value only reached VND447 billion (US$21.3 million), plummeting 25 per cent.

Meanwhile, an average of 22.7 million shares were traded per day on the Ha Noi Stock Exchange, worth a daily average of VND290 billion ($13.8 million).

The VN-Index ended the week down by 1.5 per cent from the previous Friday, closing at 479.67 points. The three first sessions saw gains driven by advances of a handful of major shares, including insurer Bao Viet Holdings (BVH), cooking producer Masan Group (MSN) and PetroVietnam Finance (PVF). The group of leading shares by capitalisation rose 2.5 per cent, while others plunged.

In Ha Noi, the HNX-Index fell 0.8 per cent over the course of last week to close on Friday at 82 points. Most stocks during the week oscillated within a narrow range, and trading volume remained low.

The main cause for the current market doldrums, according to analysts Ho Ba Tinh and Nguyen Quang Minh on the financial information website, was the weakening of cash flows caused by high interest rates. But crude oil and other commodities on the world market last week were traded at lower costs, helping ease inflationary pressures, Tinh noted.

The most information expected to effect the domestic markets this week is the release of May inflation figures.

“The HNX-Index is approaching its low during 2008-09, which might be a signal for a rally,” the analysts said.

The director of brokerage for MHB Securities Co, Hoang Thach Lan, said that it was not easy to predict how the stock market would go this week.

“The market may have to wait until the end of the month, when May inflation figures are published, to make any assessment,” Lan said. “I believe that the consumer price index in May will rise at a rate not lower than in April, while electricity rates and petrol prices have not yet seen their last increases.”

Accelerated sell-off lengthens market fall

Accelerated profit-taking amongst domestic stocks sent indexes into decline this morning, May 16.

In HCM City, the VN-Index fell by 1.71 per cent to finish at 471.49 points.

Trading volume was around 40 per cent higher than last Friday, increasing to 25.4 million shares valued at VND490.3 billion (US$23.3 million).

Losers (including 182 codes) outnumbered gainers by 4-1. Four stock traders, including Da Nang Rubber Co (DRC), Vietnam Ocean Shipping Co (VOS), Petro Capital and Infrastructure Investment Co (PTL) and Ba Ria-Vung Tau House Development Co (HDC), saw the heaviest losses during their ex-right dates.

Amongst the 10 largest capitalised stocks traded only Vietcombank (VCB), who closed on a 5 per cent increase, and Eximbank (EIB), who closed on a 0.7 per cent increase, gained points when remaining stocks closed down the session. Property developer Vincom (VIC) saw its shares fall to floor price (VND124,000).

Saigon Securities Inc (SSI) topped the market by trading nearly 1.1 million shares, closing on a 2 per cent increase of VND19,800.

In Ha Noi, the HNX-Index finished today’s session on a 1.24-per-cent fall to 80.98 points.

Total trading volume came to around 22.4 million shares, valued at VND283.5 billion ($13.5 million), compared to the 19.1 million shares traded last Friday.

PV Gas North Co (PVG) topped the market by trading 2.4 million shares.

Source: VNS

Provide by Vietnam Travel

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