Stocks, gold react to global tensions

Hanoi (VNA) – Shares sank further on April 14 on the two national exchanges as investors became cautious over escalating global tensions.

The benchmark VN Index lost 10 points in early morning trading following reports that the US had dropped a massive non-nuclear bomb on ISIS targets in Afghanistan.

The southern market recovered in the afternoon, though it closed 0.81 percent down at 718.45 points.

The southern index has lost 1.8 percent in the last three sessions.

On the Hanoi Stock Exchange, the HNX-Index was down 0.43 percent to close at 89.64 points. It was up 0.13 percent on April 13.

Tensions between the United States and Russia over Syria and between the US and the Democratic People’s Republic of Korea have fueled investors’ fears of negative impacts on local stock markets.

Roughly 60 percent of the shares on the HCM Stock Exchange slumped, with only five of the top 30 companies by market value and liquidity advancing.

April 14’s slump “was mainly driven by investors’ anxiety over the global instability as well as military risks,” analysts at BIDV Securities Co (BSC) wrote in a note.

Major shares like Vinamilk (VNM), Vietcombank (VCB), Vietinbank (CTG), Bao Viet Holdings (BVH), Vietjet Air (VJC), Masan Group (MSN) and PV Gas (GAS) all declined.

Growth of bargain buying in the afternoon trade cushioned the market, with the recovery of speculative stocks like real estate and construction.

Gainers included FLC Group (FLC), Tan Tao Investment Industry (ITA), Hoang Quan Consulting Trading Service Real Estate (HQC), Dream House Investment (DHR), Cuu Long Petro Urban Development & Investment (CCL), Khang An Investment Real Estate (KAC) and Long Giang Investment & Urban Development (LGL).

BSC’s analysts predicted the market was likely to rebound early next week and trade around 720 points when investors become more positive.

Trading volume increased slightly to 255.3 million shares on the two exchanges, the value of trades decreased 8.5 percent, totaling 4.3 trillion VND (188.6 million USD).

Foreign investors went against local investors’ movements in picking up shares worth 53 billion VND in the two markets, extending their buying streak to five consecutive sessions. -VNA