National stocks end two-day rally

Shares fell into the red during the May 17 session on both national stock exchanges.
Shares fell into the red during the May 17 session on both national stock exchanges.

However, according to securities specialist Quach Manh Hao, things will look brighter next month as the Vietnamese stock market will generate opportunities driven by investor psychology and cash pouring into bargain-priced shares.

"June is the time when a number of policies start to generate effects," he said. The national corporation to handle bad debts will be established this month, in addition to the release of 30 trillion VND (nearly 1.5 billion USD) stimulus package for the real estate sector effective from next month.

"Interest rates are declining, meaning money will gradually shift to stocks," he told the Vietnam Economic Times.

On the Ho Chi Minh City Stock Exchange, the VN-Index shed 0.56 percent to 487.60 points. Losers overwhelmed gainers by 101-88.

Market value decreased slightly over the level on May 16 to nearly 849.5 billion VND (40.4 million USD) on a volume of 50 million shares.

Blue chips were mixed. Of the 30 leading shares tracked by the VN30, 15 stocks tumbled, nine others managed to advance and the remaining closed unchanged from the previous session.

Food processor Bourbon Tay Ninh (SBT) dropped over 6.5 percent and insurer Bao Viet (BVH) slipped 3 percent – the highest rates of May 17.

The index lost 0.45 percent to 553.51 points.

On the Hanoi Stock Exchange, the HNX-Index finished down 0.8 percent on May 17, reaching 60.45 points.

As more than 21.9 million shares changed hands, trading value totalled 173.1 billion VND (8.2 million USD).

The HNX30, representing the performance of Hanoi's top 30 shares, also slid 0.93 percent to 113.22 points.

Despite the market decline, foreign investors on May 17 kept themselves as buyers on both bourses, with the net buying value hitting 63.3 billion VND (3 million USD).

On the gold market, the State Bank of Vietnam carried out its 19th gold auction on May 17 with 26,000 taels going for bids but only 8,000 taels being sold.

The selling price could not exceed the given floor price of 40.83 million VND (1,900 USD) per tael. This was 100,000 VND lower compared to Saigon Jewelry Co's rate in the morning of May 17.

The number of participants in the central bank's auctions decreased recently, especially among commercial banks – who were the major buyers.-VNA

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