Index sinks below 500 points

Investors follow market movements at VNDirect Securities. Benchmark indices on both national exchanges declined yesterday despite rallies on global markets. — VNA/VNS Photo Pham Hau

HA NOI — The Vietnamese stock market started the week on a negative note as benchmark indices on both national exchanges declined yesterday despite rallies on global markets.

On the HCM City Stock Exchange, the VN-Index sank below the 500 points to close Monday at 498.1, posting a loss of 0.44 per cent over Friday's close. However, trading volume rose 7 per cent to over 42 million shares, worth a combined VND1.23 trillion (US$64.7 million).

Decliners outnumbered advancers by 141-56, with blue-chips leading the market slump. Bank and finance shares declined with Vietcombank (VCB) sinking 2.11 per cent; Vietinbank (CTG), down 0.79 per cent; Eximbank (EIB), down 0.52 per cent and Saigon Securities Inc (SSI) with a loss of 0.9 per cent.

Trading in property shares was also sluggish, including Investment and Trading of Real Estate (ITC) dropping 2.97 per cent; Vincom (VIC), down 1.45 per cent; Song Da Urban and Industrial Zone Investment and Development (SJS), down 0.66 per cent; and Tu Liem Urban Development (NTL), off 1.28 per cent

Sacombank (STB), the most active share on a volume of over 2 million shares traded, was among few shares closing high, with a gain of 0.57 per cent to VND17,500 ($0.92).

The HCM City bourse yesterday welcomed two new listings of Dream House Investment Corp (DHR) and Vung Tau Real Estate and Construction Co (VRC). DHR rose 10 per cent from the reference price to VND18,700 ($0.98) on a volume of over 528,000 shares while VRC jumped 20 per cent to VND43,200 ($2.27) with nearly 469,000 traded.

Positive external news including rallies on the Asian stock markets yesterday morning and good results from European bank stress tests could not spur local investors yesterday, said Ha Noi-based stock analyst Nguyen Viet Hung.

"Investors even opted to ignore positive news in the domestic market such as low inflation in July, growing consumer confidence as persisting low market liquidity eroded their confidence in a solid upturn," Hung added.

He said first half earnings had been predicted positive, therefore, such releases could not drive the market rise. "In addition, development on the monetary market had not yet supported the stock market growth."

Credit growth in the first six months of this year reached 10.52 per cent while loans in Vietnamese dong rose only 4.6 per cent.

On the Ha Noi Stock Exchange, the HNX-Index shed 1.45 per cent to end yesterday at 155.7. Trading volume fell by 12 per cent from Friday's level to 29 million shares, worth a total of VND873 billion ($46 million).

Losers outnumbered gainers by 217-61, with Kim Long Securities (KLS), the most active share on the volume of 1.4 million, sinking 1.68 per cent to VND17,500 ($0.92).

Foreign investors concluded yesterday as net buyers by volume of only 15,000 shares on the HCM City market while they were net sellers by value, for a total of VND782 million ($41,160). They were net buyers on the Ha Noi market, for a value of VND1.3 billion ($6.8 million). — VNS