Stocks struggle ahead of Sino-US trade talks

12-Oct-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Domestic stocks made struggling moves today, October 10, as investors were afraid that the United States and China would fail to reach a deal at their upcoming trade talks.

The Hochiminh Stock Exchange saw 171 stocks rising and122 others ending lower, but the VN Index still fell a marginal 0.45 point, or 0.05 percent, at 987.38. Market trade was almost unchanged from Wednesday as there were 182.9 million shares worth VND4.2 trillion traded, in which block deals had a total value of over VND1.4 trillion.

According to securities enterprises, developments in the past two days suggested that the VN Index just technically recovered on Tuesday. Investors were clearly doubtful and waiting for better market conditions.

Bao Viet Securities Company in a report said the benchmark VN Index struggled as investors were pessimistic about the chance of a deal between the United States and China. As such, the trade war between the two biggest economies may not abate anytime soon.

The two governments this week have announced some restrictions on each other’s businesses and administrative work, which will trim the chances of them reaching an agreement this weekend. Negative developments in their trade relations would ruin the domestic market’s outlook in the short term, it said.

Viet Dragon Securities Company also expressed concerns over global economic uncertainties.

While there is still no clear outcome to the ongoing trade war between Washington and Beijing and between the United States and the European Union are on the verge of a new tariff war, the lack of supporting news will strongly affect the investment decisions of exchange traded funds (ETFs).

In Vietnam, foreign investors turned active net sellers on the HCM City market in September with VND378.9 billion, and they also net sold VND28.4 billion of shares on the Hanoi Stock Exchange. From July to September, the investors net bought VND162.5 billion of shares on the southern market while net selling VND413.3 billion on the northern bourse.

Military Bank Securities Company said that the VN Index would continue swinging in the 980-990 point zone with a focus put on banks and other stocks with expectations of positive earnings reports. However, in general, global uncertainties still overwhelmed earnings prospects of some key sectors.

The Hanoi Stock Exchange gained for the third straight session as the HNX-Index added 0.53 point, or 0.51 percent, at 105.16.

Only five stocks on the bourse reported matching volume of over one million shares. Lender ACB was the most liquid stock with 4.8 million shares transacted, rising 1.3 percent from the previous day to close at VND24,000.


Category: Stocks, Vietnam

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