Set as Homepage    Add Favorites

Low investor confidence to drive down markets
Date: 5/30/2016 10:00:49 PM
Vietnamese shares may extend their losses this week as energy firms could suffer more from lower oil prices, while low investor confidence could pull down blue chips.

 The benchmark VN Index on the HCM Stock Exchange on Friday finished the week at 608.11 points, down 1.1 per cent over a week.

The HNX Index on the Hà Nội Stock Exchange ended at 81.39 points, 0.5 per cent lower than the previous week.

“Energy stocks could be the major factors that drag down markets this week,” Dương Văn Chung, Military Bank Securities Corp’s head of Investment Division, said.
Energy stocks have declined in the last few sessions, showing a correction trend as global crude prices finished lower in the last two trading days amid an upturn in Canada’s production.
On global exchanges, US crude West Texas Intermediate (WTI) inched down 0.3 per cent on Friday to close trading at US$49.33 a barrel, a loss of 0.5 per cent in two days.
London-traded Brent crude slid 0.5 per cent to close at $49.32 a barrel. Brent has slipped 0.8 per cent in the last two trading sessions.
Additionally, investors may be worried about further losses in oil prices on expectations that members of the Organisation of Petroleum Exporting Countries (OPEC) will not reach an agreement on June 2.
Among energy stocks, PetroVietnam Gas Corp (GAS) fell 1.7 per cent in the last two days, PetroVietnam Drilling and Well Service Corp (PVD) retreated 2 per cent from a three-day rally of 5.7 per cent, and PetroVietnam Technical Service Corp (PVS) pulled back 1.1 per cent after jumping 3.3 per cent in the previous three days.
Investor confidence might also remain low this week after the American central bank’s chairwoman said an interest rate increase in June or July would be appropriate given positive American economic data, which would help strengthen the dollar against the Vietnamese đồng.
Investors may also be concerned over a slow recovery of China’s economy, which sent the Chinese yuan to its lowest level against the dollar last week since 2011, putting pressure on Việt Nam’s central bank to weaken the đồng in trading with the dollar to protect local products.
Last week, the daily reference rate for the exchange trading band set by the central bank remained above VNĐ21,910 for a dollar, triggering selling orders in blue chips by investors.
Among these stocks, banks suffered the heaviest losses. Vietcombank (VCB) slumped 4.4 per cent, while others such as the Bank for Investment and Development of Việt Nam (BID) and Vietinbank (CTG) lost 2.7 per cent and 0.6 per cent, respectively.
Other large-cap stocks also fell, including dairy firm Vinamilk (VNM), consumer goods producer Masan Group (MSN) and insurance firm Bảo Việt Holdings (BVH).
However, investors might feel positive after the central bank announced on Friday the amended circular on tightening local banks’ lending policies, which is considered “less strict than expected,” Bùi Nguyên Khoa, BIDV Securities Corp’s head of Market Analysis Division, said.
Such information was expected to have a positive impact on property developers, whose business now depended a lot on the amount of lending by banks, Khoa said.
Investors may also count on the prospects of steel producer Hoa Sen Group (HSG) and Đà Nẵng Rubber JSC (DRC), on expectations that these two stocks will be added to the investment portfolio of foreign investment funds Market Vector Việt Nam ETF and FTSE Việt Nam ETF for the third quarter of this year.
(Source:Vietnamnews)
   Other news
Homepage | News | Search | Comparison| Terms Of Use | Contact | User

INDOCHINA INTERNATIONAL CONSULTING CO., LTD
HO Add: 62L/36 Nguyên Hồng, Ward 11, Bình Thạnh District, HCMC - Vietnam
Biz Office Add: #48 Road No 11, Quarter 6, Hiệp Binh Chánh Ward, Thủ Đức, HCMC - Vietnam
®Source: http://viipip.com should be clearly quoted for any use of information extracted from our website.
Publication permit No: 60/GP-TTĐT , April 05, 2010.