Vietnamese stocks sink, more falls seen ahead

25-May-2012 Intellasia | Reuters | 7:01 AM Print This Post

Vietnamese stocks closed down on Wednesday as disheartened investors dumped shares because interest rates have not come down as quickly as expected, a broker and an analyst said.

Foreigners bought 123.89 billion dong ($5.95 million) worth of stocks and sold shares valued at 81.20 billion dong in the Ho Chi Minh Stock Exchange, the exchange said.

VN INDEX

Down 2.5 percent at 436.75.

Volume of shares traded: 66.02 million.

Value of shares traded: 1.12 trillion dong.

Largest gainers, largest losers

HNX INDEX

Down 3.73 percent at 73.61.

Volume of shares traded: 55.29 million.

Value of shares traded: 569.63 billion dong.

Largest gainers, largest losers

Broker/analyst comments

Nguyen Tuan, head of analysis, VPBank Securities:

“Selling pressure totally dominated the market today, especially for speculative stocks, which is a bad signal showing the market could fall steeply in coming sessions.

“Cash flows are being withdrawn and the index may fall back to 410 points in the main market, and 68 points in the Hanoi exchange.

“In terms of macro conditions, interest rates haven’t dropped as quickly as expected. The economy may bottom out in this second quarter.”

Doan Tran Phuong Phi, head of brokerage, HCM City Securities:

“The market had a strong fall as investors were disappointed and pushed up selling on concerns that the market could fall strongly this time.

“Meanwhile, there wasn’t any strong enough macro supportive news. In the short term, the market is relatively gloomy and could drop to 410 points.

“The market is expecting the central bank to take measures to have interest rates cut quickly.” ($1=20,830 dong)

 


Category: Stocks

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