Economy weighs on investors’ minds

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The State Bank devalued the local currency by 9.3 per cent against US dollar this morning, setting the exchange rate of US dollar at VND20,900, up by VND1,400 compared to yesterday.

In fact, market was expecting this move as the economy struggled with a gaping trade deficit. Investors had been keeping out the market for a long time on concerns about the possible macroeconomic changes.

Meanwhile, worries about a high inflation in the month after Lunar New Year are still looming, weighing on by recent instabilities in Arabian nations that are boosting crude oil prices higher.

Decliners still outran the advancers on both the two bourse, of which 120 stocks down compared with 86 up on Ho Chi Minh Stock Exchange (HoSE), while 143 fell compared with 107 up on Hanoi Stock Exchange (HNX).

At the close, the VN-Index hit 519.98 points, down 0.25 points or 0.05 per cent.

Biggest market-cap stocks largely fell, in which financial stocks Eximbank (EIB), Sacombank (STB), Vietinbank (CTG) and PetroVietnam Finance (PVF) all dropped. Bao Viet Holdings (BVH) lost 1.05 per cent to VND94,500.

Masan Group (MSN), however, added 0.57 per cent, along with Vincom Corp. (VIC) and Vinamilk (VNM) both advancing.

Trading values continued below VND879.04 billion ($43.95 million), with volumes at 35.6 million shares, up 12.77 per cent against yesterday’s session.

In  contrast, the HNX-Index jumped today. The benchmark rate was up 0.14 points or 0.13 per cent to 107.81 points, helped by some major stocks advancing.

Major financial stocks slightly fell, however, with Habubank (HBB) losing 0.89 per cent, Asia Commercial Bank (ACB), 0.41 per cent.

PetroVietnam Services (PVS) and PetroVietnam Construction (PVX) were among the decliners.

Liquidity slightly rose some 10 per cent to 19.17 million shares, worth VND367.54 billion ($18.34 million).

Foreigners continued their net selling on the HoSE today. They sold VND240.25 billion ($12.01 million) of 5.79 million shares, while buying VND199.41 billion ($9.97 million) of five million units, accounted for VND40.83 billion ($2.04 million) net selling.

The foreigners’ net selling was believed to drag HoSE down, after supporting the southern bourse throughout a long time.

“Given the low liquidity context, the movement of VN-Index largely depends on cash flow of foreign investors. The benchmark rose when they [foreigners] boosting net buying and fell when they net sold,” said Au Viet Securities.

The foreigners focused on ITC, DPM, ITA, FPT and STB among the buyers.

On the HNX, the foreign investors continued their net buying, with 649,800 shares bought and 153,700 sold. KLS, PVI, VCG, PVX and PVS were purchased most while BVS, TDN, DBC, STL and OCH were sold most.