Stocks down on global uncertainties

07-Aug-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Local stocks took a nosedive today, August 5, as global uncertainties kept investors on edge whereas property giant VIC and its two subsidiaries VHM and VRE dropped strongly on the Hochiminh Stock Exchange.

VHM suffered the biggest decrease as it closed the day at an intraday low of VND85,200 per share, down 5.5 percent compared with the previous session. Meanwhile, VIC fell 3.6 percent at VND118,000 and VRE fell 3.4 percent at VND35,000.

Most other stocks performed poorly in tandem with the regional downtrend, pushing the VN Index down a hefty 17.95 points, or 1.81 percent, against last Friday at 973.15. The HCM City bourse saw nearly 196 million shares changing hands with a total value of VND5.1 million, up 4.9 percent and 9.2 percent, respectively.

Earlier, many securities experts expected the market downtrend to continue this month while investors are finding it harder to earn profits in the short term.

Last week, the market rally stopped on Friday because investors were afraid of negative developments in United States-China trade tensions. US President Donald Trump announced another 10 percent tax bill on $300 billion worth of Chinese products.

Meanwhile, the US Federal Reserve’s July meeting concluded with interest rates cut by 25 basis points instead of 50 basis points as expected. Global investors are concerned that the Fed’s statement on future rate cuts seems too soft and depends on the strength of the US economy.

Speaking with, Le Duc Khanh, director of market strategy at PetroVietnam Securities JSC, said the unpredictability of US policy has made global economies and equities markets more volatile.

Those developments will have deep impact on other central banks’ monetary policies and on commodities like oil and gold, thus global stock markets may fall further this week.

Hoang Thach Lan, director of the individual investors department at Viet Dragon Securities Company, said the local market has made little reaction to international news and internal factors since March.

This month, the US and China will return to negotiations for a trade deal. A lot more tough decisions and negative news are expected and the market sentiment will be dampened. Besides international news, the fundamentals of the Vietnamese stock market are not as good as expected because corporate earnings are below expectations, Lan said.

On the Hanoi Stock Exchange, the HNX-Index lost 0.8 point, or 0.77 percent, versus last Friday at 102.91. Trading volume improved 10.2 percent at 31 million shares while value expanded 5 percent at VND456 billion.


Category: Stocks, Vietnam

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