Stocks fall slightly, confidence improves

Hanoi (VNA) - Vietnamese shares extended losses for a third straight session on August 10 but investor confidence showed signs of improvement after being brought down by false news and global tension.

The benchmark VN Index on the HCM Stock Exchange went down slightly to close at 773.43 points, little changed from August 9’s closing level.

The HNX Index on the Hanoi Stock Exchange inched down 0.10 percent to end at 100.97 points.

The two indices have lost total 2.5 percent and 1.4 percent after the last three sessions.

More than 257.5 million shares were traded on both local exchanges, worth 3.87 trillion VND (171.9 million USD).

The trading figures were down nearly 40 per cent in both volume and value compared to August 9’s numbers.

The stock market performed positively on August 10 and it could recover in coming sessions as investor sentiment improved after being rocked a day before, according to Bao Viet Securities Company (BVSC).

Vietnam’s stock market on August 9 tumbled, posting the worst fall in 20 months, after tension between the US and the Democratic People’s Republic of Korea escalated and false news about the arrest of a former highly-ranking bank executive.

Investor confidence was dampened, which triggered a large-scale sell-off on the stock market, made investors turn to less risky assets such as gold, brought all 20 sectors of the stock market down and resulted in a loss of 2 billion USD in total market capitalisation.

Deputy Prime Minister Vuong Dinh Hue said on August 10 that investors should count on the Government and the finance ministry instead of believing rumours, which could damage the stock market on a large scale.

He said that the Government, the Ministry of Finance and the State Securities Commission committed to run the stock market in a public, transparent manner to protect the benefits and rights of investors and listed companies.

The sharp decline on August 9 offered investors a chance to purchase stocks that were hit hard, according to Saigon-Hanoi Securities (SHS).

Strong investors’ bottom-picking helped the benchmark VN Index recoup a part of its intraday loss on August 10 when it fell back to 770-point level, SHS said in its note.

Market trading liquidity declined sharply from August 9 and it proved that selling pressure was not high and investor confidence really turned positive, it said.

Investors’ purchases for stocks that were hit hard on August 9 lifted more than half of the 20 sectors on the market, including insurance, energy, food and beverages, construction and plastic production.

Meanwhile, shares of banks, securities firms and property developers remained negative.

On such conditions, SHS forecast that the VN Index on August 11 would fluctuate and move sideways in the range of 777 and 784 points.-VNA