Economic doom and gloom spooks buyers

July 03, 2012 | 18:00

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The market continued its downward trend Tuesday on the absence of supportive local economy news.

An electricity price hike is still raising manufacturing sector worries, while a modest gasoline prices reduction has not encouraged investors’ sentiment.

Both bourses sunk into the red. Decliners amounted to 210 stocks on the Ho Chi Minh Stock Exchange (HoSE), overwhelming 40 advancers. The benchmark VN-Index dipped 6.21 points or 1.48 per cent to end at 413.09 points.

Real estate stocks led the losers, massively falling to floor prices. Vincom Group (VIC) shed VND1,000 to VND81,000. Kinh Bac City Development Share Holding Corp. (KBC), Song Da Urban & Industrial Zone Investment and Development (SJS), Khang Dien House Trading and Investment (KDH) hit the floor.

Saigon Securities Inc. (SSI) and PetroVietnam Finance (PVF) significantly lost while Vietcombank (VCB) deeply sank. Other banking stocks like Eximbank (EIB), Military Bank (MBB), Vietinbank (CTG) just slightly slipped. Bao Viet Holdings (BVH) also strongly dropped.

Cheap speculative stocks in real estate, mineral and rubber sectors continued their sharp downward trend. But demand for shares started to add up on a number of those stocks.

Vietnam Electricity Construction (VNE), Tay Bac Minerals Investment (KTB), Hamico Group Mineral (KSH) saw a number of bidding orders outstanding at the close.

Ho Chi Minh City Infrastructure Investment (CII), Ninh Van Bay Real Estate (NVT), Binh Dinh Minerals (BMC) even significantly gained. Matching value of the southern bourse improved back to VND540.5 billion ($26.1 million), with total liquidity reaching 43.3 million shares worth VND678.7 billion ($32.8 million).

The HNX-Index of the Hanoi Stock Exchange (HNX) shed 0.88 points or 1.26 per cent to end at 69.21 points. Some 192 stocks lost compared with 47 gainers on the northern bourse.

Securities company shares largely fell further concerns about this sector. Stocks like VNDirect Securities (VND), Bao Viet Securities (BVS), Kim Long Securities (KLS) reduced their falls to 1-2 per cent.

Matching value also improved on the bourse to VND305 billion ($14.7 million) on the HNX, increasing liquidity to 37.9 million shares worth VND340.7 billion ($16.5 million).