Decline on the HCM Stock Exchange

Shares continued to decline on the HCM Stock Exchange yesterday, with the VN-Index closing at 401.15, a loss of another 0.78 per cent of its value from the previous session.

Trades were sluggish with just over 24.2 million shares exchanged, worth only VND395.3 billion (US$ 18.8 million). Just three codes saw volumes in excess of a million shares: Becamex Infrastructure Development (IJC), Eximbank (EIB) and real estate developer Hoang Quan Corp (HQC).

Advancers edged decliners by 101-98, but blue chips tumbled, with none of the 10 leading shares by capitalization posting gains. Shares hitting their ceiling prices yesterday were mostly penny stocks, such as VIKY Plastic (VKP), Full Power Construction (FPC), Post and Telecommunications Investment and Construction (PTC), Ha Nam Minerals (KSH) and Tay Bac Minerals Investment (KTB).

Meanwhile shares rebounded in the closing minutes on the Ha Noi Stock Exchange, allowing the HNX-Index to inch up just 0.18 per cent over Tuesday’s close to 67.93.

Advancers outnumbered decliners by 140-86, but the market value fell slightly to VND256.6 billion ($ 12.2 million) with just 25.5 million shares traded. Kim Long Securities Co (KLS) remained the most heavily-traded stock nationwide, with nearly 2.4 million shares changing hands. It rose 1 per cent to close yesterday’s session at VND10,100 per share.

Foreign investors continued to unload shares, selling a net of VND55 billion ($ 2.6 million) on the HCM City market, but they were net buyers on the Ha Noi market, although by a slender net value of just VND231 million ($ 11,000).

Disappointing third-quarter business results and continued high interest rates have continued to leave investors wary in choosing shares in which to invest, reducing any possibility of a market rebound, Tan Viet Securities Co analysts wrote in a report.

However, they said, these market conditions also offered an opportunity for medium- and long-term investors to find stocks with good fundamentals and sound financials at reasonable prices.

Meanwhile, VND Securities Co analysts suggested that the only good sign was that indices were moving towards their nearest floor levels, and investor bottom-feeding may help boost demand.

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