Pessimism undercuts markets

Pessimism undercuts markets

Investor hesitancy appeared to be the cause of fluctuations on the two national stock exchanges November 27.

Source: VietstockFinance

Investors were weighed down by risks and buoyed by technical support, stock analysts of FPT Securities Co wrote in a report.

"Their indecision was reflected by marginal swings between gains and losses today," they said, adding that declining interests in blue-chips had also depressed the already bearish market.

The benchmark VN-Index fluctuated but closed on a negative note by the end of the session, giving up 0.27 per cent to finish yesterday at 376.89 points.

The market volume was down 15 per cent from a day earlier to 18.7 million shares but the value of trades increased 15 per cent, totalling almost VND300.5 billion (US$14.4 million).

Large-cap shares continued their slump with the top 30 falling 0.33 per cent to close at 443.68 points, with seven codes advancing, 12 declining and 11 remaining static.

Among the few gainers, steelmaker Hoa Phat Group (HPG), Military Bank (MBB) and logistic company Gemandept (GMD) posted modest gains of 0.8-19 per cent, thanks in part to the support of foreign buyers.

Sluggish trading meant no listings sold more than 1 million shares. Bac Giang Mineral Exploitable and Processing (BGM) was the most active with more than 682,500 shares changing hands, closing 2.13 per cent up at VND4,800 a share.

Shares on the Ha Noi Stock Exchange, however, trod water with the HNX-Index closing unchanged at 50.96 points.

Both trading volume and value dropped by 16 per cent, totalling more than 16 million shares, worth VND95.3 billion ($4.6 million).

Most blue chips on the northern bourse hovered around reference prices, except PetroVietnam Construction (PVX), which rose 2.44 per cent to end VND4,200.

Sai Gon-Ha Noi Bank (SHB) continued to be the most active code with over 2 million shares changing hands, closing off 2.08 per cent at VND4,700 a share.

Foreign investors were also mixed yesterday. They concluded as net buyers on the HCM City market, picking up a net VND7.67 billion ($367,000) worth of shares, but they were net sellers on the Ha Noi exchange, responsible for VND665 million ($32,000) worth of shares.

According to market insiders, gloomy business result projections in many listed companies this year eroded investor confidence. More and more companies were announcing plans to revise down their business targets or even reduce dividend payouts, which was enough to drive investors away from the market.

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