Poor earnings depress securities market
Shares continued their losing streak on June 26 on the HCM Stock
Exchange, with the VN-Index closing down by over a percent to 419.19
points.
Shares continued their losing streak on June 26 on the HCM Stock Exchange, with the VN-Index closing down by over a percent to 419.19 points.
The value of trades also sagged by over 25 percent from June 25's pace to a mere 744.9 billion VND (35.4 million USD). Volume reached about 50.5 million shares.
Gains by three stocks – Eximbank (EIB), commercial baker Kinh Do (KDC) and PetroVietnam Drilling Services Co (PVD) – failed to lift the VN30 Index, which retreated by 0.9 percent to conclude the June 26 session at 493.73 points.
The cause of the current market doldrums included disappointment over corporate earnings in the second quarter, said Alan T Pham, chief economist of investment management firm VinaCapital.
Auditors have pinpointed a number of troubled companies which are likely to fail due to insolvency, he noted, including coffee processor Thai Hoa Group (THV); TNG Investment and Trading Co (TNG); construction firms Hanic (SHN), Vinaconex 11 and Vitaly (VTA); logistics company Vinaship (VNA); South East Asia Hamico Export (KSD); and Truong Son Securities Co (TSS).
A common feature of these firms is liabilities that exceed liquid assets, he noted.
Pham predicted, however, that businesses will be able to more easily access capital in the third quarter.
"While monetary policies need more time to take effect, fiscal policies are being implemented rapidly, actively supporting the stock market," he said.
On the Hanoi Stock Exchange on June 26, the HNX-Index also fell by nearly 1 percent to 71.11 points. The value of trades managed a slight increase over the prior session, however, reaching 445.8 billion VND (21.2 million USD) on a volume of 47.8 million shares.
VNDirect Securities Co (VND) was the most-active share nationwide with 3.6 million traded.
Benchmark indices on both exchanges had declined for four successive sessions, falling below their support levels, FPT Securities Co analysts wrote in their daily report.
"Investor psychology has shifted from caution to fear, causing higher sell pressure," they said. While some bottom feeding has appeared, they added, it was not enough to alter the prevailing market trend.-VNA
The value of trades also sagged by over 25 percent from June 25's pace to a mere 744.9 billion VND (35.4 million USD). Volume reached about 50.5 million shares.
Gains by three stocks – Eximbank (EIB), commercial baker Kinh Do (KDC) and PetroVietnam Drilling Services Co (PVD) – failed to lift the VN30 Index, which retreated by 0.9 percent to conclude the June 26 session at 493.73 points.
The cause of the current market doldrums included disappointment over corporate earnings in the second quarter, said Alan T Pham, chief economist of investment management firm VinaCapital.
Auditors have pinpointed a number of troubled companies which are likely to fail due to insolvency, he noted, including coffee processor Thai Hoa Group (THV); TNG Investment and Trading Co (TNG); construction firms Hanic (SHN), Vinaconex 11 and Vitaly (VTA); logistics company Vinaship (VNA); South East Asia Hamico Export (KSD); and Truong Son Securities Co (TSS).
A common feature of these firms is liabilities that exceed liquid assets, he noted.
Pham predicted, however, that businesses will be able to more easily access capital in the third quarter.
"While monetary policies need more time to take effect, fiscal policies are being implemented rapidly, actively supporting the stock market," he said.
On the Hanoi Stock Exchange on June 26, the HNX-Index also fell by nearly 1 percent to 71.11 points. The value of trades managed a slight increase over the prior session, however, reaching 445.8 billion VND (21.2 million USD) on a volume of 47.8 million shares.
VNDirect Securities Co (VND) was the most-active share nationwide with 3.6 million traded.
Benchmark indices on both exchanges had declined for four successive sessions, falling below their support levels, FPT Securities Co analysts wrote in their daily report.
"Investor psychology has shifted from caution to fear, causing higher sell pressure," they said. While some bottom feeding has appeared, they added, it was not enough to alter the prevailing market trend.-VNA
You should also see
Prime Minister pays tribute to legendary founders of Vietnam
Prime Minister Pham Minh Chinh and other officials offered incense in commemoration of the Hung Kings, the legendary founders of Vietnam, at Kinh Thien Palace on Nghia Linh Mountain in Viet Tri city, the northern province of Phu Tho, on April 18 (the 10th day of the third lunar month).
See more
Business
Beautycare Expo 2024 opens in Hanoi
The Beautycare Expo 2024 kicked off Hanoi on April 18, featuring over 250 booths from more than 15 countries and territories.
Business
Standard Chartered, US promote clean energy investments in Vietnam
Standard Chartered and the US Agency for International Development (USAID) have signed a Memorandum of Understanding (MoU) on green financing in Vietnam and to promote the deployment of advanced clean energy in Vietnam.
Business
Vietnam Airlines, Sun Group promote Vietnam’s tourism in RoK
National flag carrier Vietnam Airlines and Sun Group on April 17 held a tourism promotion event themed “The Magnificent Vietnam” in Seoul, aiming to promote Vietnam’s tourism potential, flights, and trade opportunities for Vietnam and the Republic of Korea (RoK).
Business
Overseas remittances to HCM City record highest increase in three years
Overseas remittances to Ho Chi Minh City exceeded 2.86 billion USD in the first quarter of 2024, an annual increase of 35.4% and the highest recorded in three consecutive years.
Business
Thu Duc city seeks investment in 11 PPP projects
Authorities of Thu Duc city, Ho Chi Minh City, held a conference on April 17 to draw investment in 11 public-private partnership (PPP) projects in the fields of education, culture and sports, with a total capital of over 2 trillion VND (83.3 million USD).
