Share prices continue slide

Ho Chi Minh City’s VN-Index shed sharply 37.70 points to close at 931.18. Hanoi’s HASTC-Index lost 44.21 points to close 321.44.

Trading volumes and turnover in HCMC fell 32% and 31% respectively to 3.4 million shares and VND425 billion (US$26 million).

There were 91 losers and only 6 gainers out of the total 109 stocks. Many blue chips like PPC, REE, PVD, KDC, FPT, SAM, and VSH were among losers to hit the lower price at 5% limit.

Other heavyweights like STB, GMD, VIP, and VNM suffered big losses, all of which lost less than 4%.

Market analysts attributed the sharp decline in the market to the massive offload among many investors who were haunted by the bourse crash.

Others took a wait-and-see attitude toward information on the ongoing two-day Vietnam Economic Forum which kicked off Monday, according to analysts.

Sacombank continued to lead the market in terms of both volumes and turnover with 572,720 shares changing hands for VND78 billion.

The mutual funds, PRUBF1 and VFMVF1 lost 0.7% and 4.9% respectively to VND13,800 and VND32,800.

Foreign investors pumped VND90 billion in 727,060 shares focusing on VNM, GMD, SJS, PVD,VFMVF1 and PRUBF1.

While they also unleashed 626,520 shares worth VND103 billion mainly PPC, FPT, SAM and KDC.

The formerly red-hot-market, HCMC, has already lost a fifth of its value in the past month alone.

The bourse is forecast to face 30% drop this year.

A market analyst from HCMC-based investment consulting firm, who wanted to remain unnamed, said to reflect the true value of stocks the market needed to fall about 50%.

Such crash would shatter thousands of punters who have spent out their savings in the market after its glittering performance last year.

Last year, the index rose by about 150%, and in the first two months of this year, it went up another 50%.

However the bullish sentiment is expected to hit the market in the near future, promoted by the country’s booming economy, which has grown by around 8% annually for the past decade.

Source: Thanh Nien