Investors sit on the fence

June 21, 2012 | 18:00

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Market sentiment remained cautious Thursday with both bourses off their games.

The VN-Index of Ho Chi Minh Stock Exchange (HoSE) shed 1.75 points or 0.4 per cent to 431.14 points. The HNX-Index of Hanoi Stock Exchange (HNX) lost 0.46 points or 0.62 per cent to end at 73.9 points.

Ho Chi Minh City announced a consumer price index (CPI) fall of 0.43 per cent in June against May, marking the first month of deflation in last 21 months. It followed Hanoi’s similar announcement yesterday.

The results came amidst continuing worries about stagnancy in the economy. Even the positive news of a gas price reduction this morning failed to encourage investors’ sentiment.

Weakening confidence along with lack of positive macroeconomic signs worried analysts about a strong fall of the market in following sessions.

“Once macroeconomic news is absent, there is big possibility that ongoing preserving cash flows from will eventually lose its patience and push the index to an even worse situation,” said VNDirect in a note to clients.

Liquidity remained weak. Matching value stood at VND533.5 billion ($25.8 million) on the HoSE and VND223.9 billion ($10.8 million) on the HNX.

HoSE saw 149 stocks off compared with 71 up, while the HNX witnessed 125 stock decliners against 80 adding.

Blue-chips were mixed, among them PetroVietnam Gas (GAS), Vietcombank (VCB), Vietinbank (CTG), Vincom Corp. (VIC) climbed. Whereas Ocean Group (OGC), PetroVietnam Drilling and Well Services (PVD), Song Da Urban & Industrial Zone Investment and Development (SJS) losing.

Among the gainers, foreigners boosted their purchasing in a number of blue-chips particularly banking stocks like Military Bank (MBB), Vietcombank (VCB), Eximbank (EIB).

A large number of speculative stocks turned head to strongly fall today. Real estate stocks Hoang Quan Consulting-Trading-Service Real Estate Corp. (HQC), Duc Long Gia Lai Group (DGL), Ninh Van Bay Real Estate (NVT), Ho Chi Minh City Infrastructure Investment (CII) hit the floor with big offering volumes. Mineral stocks Binh Thuan Mineral Industry (KSA), Hamico Group Mineral (KSH) also strongly dropped.