Local stocks quiet ahead of key events
Local stocks quiet ahead of key events
Vietnamese shares slid on Tuesday as investors remained quiet ahead of key events that focus on the global economy, finance and trade issues.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange shed 0.31 per cent to close at 944.01 points.
The VN-Index lost 0.70 per cent on Monday.
The market trading condition was negative on the southern bourse with 174 declining stocks, which were dominant over 112 gainers.
Trading liquidity remained average with nearly 167 million shares traded, worth VND3.87 trillion (US$166.4 million).
The large-cap VN30-Index went down 0.57 per cent to end at 848.17 points.
Eighteen of the 30 largest stocks by market value and trading liquidity in the VN30 basket ended in negative territory
That indicated cautious sentiment across the local market as investors and analysts were eyeing positive outcomes of incoming events, according to MB Securities Co (MBS).
First, the US central bank Fed’s two-day meeting, which would start later on Tuesday, will give signals for further rate cuts this year to boost the world economy.
Investors and analysts on global markets had learnt the Fed would keep its rates steady this time, MBS said in its daily report.
“After the Fed meeting minutes and statement, the global markets will have a clearer view of the factors such as the US-China trade war, US president Donald Trump’s call for Fed rate cuts and weakened economic data,” MBS reported.
Besides, attention was also paid to the G20 summit that will take place in Japan later this month on hopes that the US and China would find some solutions to ease trade tensions, the Ha Noi-based stock brokerage added.
On the Vietnamese stock market, key sectors that often drive the market up such as banking, petroleum and energy, retail and building materials advanced, data on vietstock.vn showed.
But their growth rates were not sufficient to offset the under-performance of other industries like healthcare and pharmaceuticals, rubber and plastics, food and beverage, seafood processing and agriculture.
Leading stocks were still weighed down by strong selling, but domestic investors began picking up shares when the VN-Index hit its previous bottom line of 938.95 points, MBS said.
The stock market continued moving sideways with low trading liquidity and the rebound made during Tuesday was only technical and could be short-lived, Sai Gon-Ha Noi Securities (SHS) said in a note.
On the Ha Noi Stock Exchange, the HNX-Index was up 0.24 per cent to end at 103.75 points.
The northern market index inched up 0.04 per cent on Monday.
More than 28 million shares were traded on the northern bourse, worth nearly VND320 billion.
