Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Vietnam News  >> Capital Markets  >> Foreign investors cushion fall
NEW UPDATES Asean Affairs   20 May 2014  



Foreign investors cushion fall

Continuous foreign buying last week helped cushion the market fall, but escalating tensions between Viet Nam and China is expected to impact the stock market in the short term.

On the HCM Stock Exchange, the VN-Index lost a cumulative 2.38 per cent over the week, closing at 529.49 points on Friday, while the HNX-Index on the Ha Noi Stock Exchange decreased 2.53 per cent during the period, ending the day at 72.31 points.

Pessimistic market outlook prompted many investors to offload shares while securities companies also sold shares pledged as collateral to curtail losses.

Large-cap stocks bore the maximum brunt as most blue chips on both the exchanges plummeted. They were PV Gas (GAS), Vinamilk (VNM), Bao Viet Holdings (BVH), VinGroup (VIC), Vietcombank (VCB) and BIDV Bank (BID) on the HCM City market; Sai Gon-Ha Noi Bank (SHB), Kim Long Securities (KLS), PetroVietnam Construction (PVX), Vinaconex (VCG) and Asia Commercial Bank (ACB) on the Ha Noi bourse.

However, low share prices also attracted plentiful bargains, which pushed the trading volumes up on both the exchanges.

The daily trading volume on the HCM City Exchange rose 7.6 per cent as compared to the previous week, reaching 104.5 million shares worth over VND1.55 trillion (US$73.5 million), while the volume on the Ha Noi market also increased 8.8 per cent, averaging 61.6 million shares, worth VND503.5 million ($23.9 million).

"Complicated developments in the East Sea will continue to be an uncertainty factor for the market in the near future. The market tends to rebound when the Index inches close to 508 points, thanks to bargain fishing, but cautious investor sentiment can lead to a fragile market," noted Nguyen Van Quy, an analyst at FPT Securities Company.

Quy remarked that liquidity had dropped in the last trading sessions and warned that this can be a bad sign for the ongoing recovery trend.

Information regarding nationwide demonstrations by workers to protest China's hostile act in the East Sea created a sense of panic among the local investors and many of them rushed to sell shares in the middle of the week, but steady purchasing by foreign investors cushioned the losses.

During this time, continuous buying by foreign investors was a major support for the market and helped allay investor worries, Quy claimed, adding that foreign buying constituted 20 per cent of the total market volume in several sessions.

Foreign investors bought a net value of VND1.133 trillion ($53.7 million) worth of shares on the HCM City Exchange during the week, focusing on blue chips, such as Hoang Anh Gia Lai Group (HAG), PetroVietnam Drilling and Well Services (PVD), and Hoa Phat Group (HPG).

Foreign investors were also net buyers on the Ha Noi bourse, picking up shares worth a combined total of VND215.1 billion ($10.2 million).

According to many analysts, local investors have overreacted to information on the Viet Nam-China waters dispute, resulting in steep declines in share prices, which led to heavy foreign buying.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                            May 20, 2014 Subsribe Now !
• RI important market for Sony Mobile  Subcribe: Asean Affairs Global Magazine
• Haze may return in coming months: Balakrishnan
• Asian Agri stops using ‘illegal’ oil palm fruits
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Exports expand: HK the new market for organic rice
• Foreign investors cushion fall
Asean Analysis                    May 16, 2014

• Asean Analysis May 16, 2014
Thailand in Crisis: Options for U.S. Policy
Advertise Your Brand

Asean Stock Watch    May 19, 2014
• Asean Stock Watch-May 19, 2014
The Biweekly Update
• The Biweekly Update  May 16, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com