Blase investors depress markets

HA NOI — Weekend lethargy, fuelled by a fall in the Dow Jones overnight, caused lacklustre investor sentiment that resulted in the VN-Index closing down 0.7 per cent to 482.82 points.

Trading saw just 36.3 million shares changing hands, worth VND1 trillion (US$51.3 million).

Meanwhile, the HNX-Index in Ha Noi continued its downward trend falling 0.89 per cent yesterday to 146.14. Trading volume on the day reached just 27.5 million shares, worth VND738.5 billion ($37.9 million).

Market observers said that purchasing power remained insignificant, resulting in the indexes moving sidewards.

Vu Dinh Do, head of the analysis department at VNDirect Securities, said that current market trends reflected low credit growth versus high interest rates.

As a consequence, the influx of money was concentrated in penny stocks and short-term gains, Do said.

He recommended that investors go for low-priced high-portfolio stocks.

Nguyen Van Chien, head of the brokering department at an HCM City-based securities firm's Da Nang branch, said Da Nang Education Development&Investment (DAD) stock rose 6.5 per cent, while Education Book Co in Ha Noi City (EBS) rose 6.7 per cent, and Education Cartography and Illustration (ECI), climbed 6.9 per cent.

"Money recycled in this kind of stock is on the expectation that the coming school year will benefit the investment," Chien said. — VNS