Shares on the nation's stock exchanges declined last week as speculativetrades, discouraging economic data, and mixed third-quarter earningsresults from listed companies took their toll, a trend expected tocontinue into the new trading week.
In figures releasedlast week, inflation rose nationwide by a rate of 18.16 percent in thefirst nine months of the year, although it showed signs of slowing on amonth-to-month basis, rising by just 0.2 percent in Hanoi duringSeptember and 0.88 percent in HCM City .
The rise inconsumer prices has shown signs of decelerating and the Ministry ofFinance announced last week that it was determined to keep fuel pricesstabilised towards the end of the year, but heavy profit-taking after arecent rally drove down indices on both of the nation's stock exchanges,said FPT Securities Co analyst Le Thi Bich Hang.
Sharpdeclines on world markets last week also weighed heavily on theconfidence of investors on Vietnam's market, Hang said, notingdisappointment with the US Federal Reserve's failure last week to adoptstronger stimulus measures.
Standard and Poor's also cutItaly 's sovereign credit rating last week from A+ to A, with anegative outlook, making it the sixth country in the eurozone it hasdowngraded this year. Meanwhile, the threat of a second recession loomedlarger, as the IMF lowered growth forecasts for both the US and Europe,estimating a US growth rate of just 1.5 percent this year, and growthin Europe of just 1.6 percent.
In response to thediscouraging news, the VN-Index lost 3.67 percent over the course oflast week, closing on Sept. 23at 440.30 points. The average daily valueof trades on the HCM Stock Exchange declined by 20 percent from theprevious week to 940.4 billion VND (45.2 million USD), while the averagedaily volume of trades fell by 37 percent to about 45.3 million shares.
On the Hanoi Stock Exchange, meanwhile, the HNX-Indexalso slid by 0.39 percent over the course of the week, closing on Sept.23 at 74.58. Daily volumes and values each plunged by 40 percent,averaging 40.6 million shares persession for a value of 463 billion VND(37.9 million USD).
Blue chips were the biggest losers ofthe week. The VS-Large Cap index, which tracks money flows intolarge-cap stocks, declined by 5.75 percent, led by steep declines inshares of insurer Bao Viet Holdings (BVH), food producer Masan Group(MSN) and real estate developer Vincom (VIC).
With pennystocks also losing value, mid-cap stocks were the market's only gainersduring the week, with the VS-Mid Cap index rising by 0.65 percent.
Foreign investors continued to be net sellers on both stock exchangeslast week, unloading a combined 134.2 billion VND (6.5 million USD)worth of shares.
This week, investors were expected toturn their focus increasingly on third-quarter earnings reports.Analysts with the financial newswire vietstock.vn said that earningssecurities companies, real estate developers and shipping companies wereall expected to slow from previous reporting periods.
"Grey will likely continue to be the primary colour for business profitssince the business environment is hardly changing," they wrote. /.
In figures releasedlast week, inflation rose nationwide by a rate of 18.16 percent in thefirst nine months of the year, although it showed signs of slowing on amonth-to-month basis, rising by just 0.2 percent in Hanoi duringSeptember and 0.88 percent in HCM City .
The rise inconsumer prices has shown signs of decelerating and the Ministry ofFinance announced last week that it was determined to keep fuel pricesstabilised towards the end of the year, but heavy profit-taking after arecent rally drove down indices on both of the nation's stock exchanges,said FPT Securities Co analyst Le Thi Bich Hang.
Sharpdeclines on world markets last week also weighed heavily on theconfidence of investors on Vietnam's market, Hang said, notingdisappointment with the US Federal Reserve's failure last week to adoptstronger stimulus measures.
Standard and Poor's also cutItaly 's sovereign credit rating last week from A+ to A, with anegative outlook, making it the sixth country in the eurozone it hasdowngraded this year. Meanwhile, the threat of a second recession loomedlarger, as the IMF lowered growth forecasts for both the US and Europe,estimating a US growth rate of just 1.5 percent this year, and growthin Europe of just 1.6 percent.
In response to thediscouraging news, the VN-Index lost 3.67 percent over the course oflast week, closing on Sept. 23at 440.30 points. The average daily valueof trades on the HCM Stock Exchange declined by 20 percent from theprevious week to 940.4 billion VND (45.2 million USD), while the averagedaily volume of trades fell by 37 percent to about 45.3 million shares.
On the Hanoi Stock Exchange, meanwhile, the HNX-Indexalso slid by 0.39 percent over the course of the week, closing on Sept.23 at 74.58. Daily volumes and values each plunged by 40 percent,averaging 40.6 million shares persession for a value of 463 billion VND(37.9 million USD).
Blue chips were the biggest losers ofthe week. The VS-Large Cap index, which tracks money flows intolarge-cap stocks, declined by 5.75 percent, led by steep declines inshares of insurer Bao Viet Holdings (BVH), food producer Masan Group(MSN) and real estate developer Vincom (VIC).
With pennystocks also losing value, mid-cap stocks were the market's only gainersduring the week, with the VS-Mid Cap index rising by 0.65 percent.
Foreign investors continued to be net sellers on both stock exchangeslast week, unloading a combined 134.2 billion VND (6.5 million USD)worth of shares.
This week, investors were expected toturn their focus increasingly on third-quarter earnings reports.Analysts with the financial newswire vietstock.vn said that earningssecurities companies, real estate developers and shipping companies wereall expected to slow from previous reporting periods.
"Grey will likely continue to be the primary colour for business profitssince the business environment is hardly changing," they wrote. /.
