Fears market standing on edge of cliff

June 27, 2012 | 16:27

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Both bourses continued dropping Tuesday, with investors increasingly fearing the market is about to enter an even stronger downward trend.

The VN-Index of Ho Chi Minh Stock Exchange (HoSE) shed 4.93 points or 1.16 per cent further to 419.19 points. The HNX-Index of Hanoi Stock Exchange (HNX) slipped 0.69 points or 0.96 per cent to 71.11 points.

While investors increasingly fear a bigger market fall next session, analysts also warned about a negative outlook due to weak cash inflows and absence of positive economic news.

“There has been no sharp falling session and running-away pressure. But as the market still sees little improvements in cash flows and no power to rebound, the recent flat trend might soon end and a more negative situation can come,” said VNDirect Securities.

Liquidity reduced against the previous session. Matching value eased back to VND670 billion ($32.4 million) on the HoSE and to VND353.2 billion ($17.1 million) on the HNX.

Total liquidity reached 50.5 million shares worth VND745 billion ($36 million) and 47.8 million shares worth VND445.8 billion ($21.5 million) on the two bourses, respectively.

Both bourses sunk into the red. Speculative stocks in real estate, mineral, rubber sectors massively fell down to floor prices.

Ninh Van Bay Real Estate (NVT), Vietnam Mechanisation Electrification and Construction (MCG), Dat Xanh Real Estate Service & Constructions Corp. (DXG), Sao Mai Construction Corp. (ASM), Vietnam Electricity Construction (VNE) were among numerous sink real-estate stocks, but having quite high liquidity of some hundreds of thousand shares to some millions shares matched each.

Rubber stocks Southern Rubber Industry (CSM), Danang Rubber (DRC), Thong Nhat Rubber (TNC), Phuoc Hoa Rubber (PHR), along with mineral stocks Bac Giang Exploitable Mineral (BGM), Binh Dinh Minerals (BMC), Lao Cai Mineral Exploitation & Processing (LCM) also had quite high matching volumes despite continuing falls on those stocks.

Some 207 stocks ended off on HoSE, compared with as little as 32 up. PetroVietnam Drilling and Well Services (PVD) suddenly jumped today after good earning result announcement for second quarter.

HNX saw 203 decliners overwhelming 50 advancers. Saigon Commercial Real Estate (SRC) suddenly soared with more than two million shares matched.