ASEAN KEY DESTINATIONS
Inflation rumours derail shares
Fifteen minutes after the opening of trading yesterday, investors turned to text messaging and gossiping about November's soon-to-be-released inflation figures, with some saying it would show a one-month increase of more than 1 percent.
On Tuesday, the National Centre for Socio-Economic Information and Forecasting predicted a rise in consumer prices in November of 0.8 per cent, but official data was not expected until after the 22nd of the month.
On the HCM City Stock Exchange, the rumours circulating that actual inflation would be higher than the centre's estimate sent the VN-Index down by nearly a per cent to close at 426.51 points. Trading volume dropped to 27.4 million shares, worth VND578.7 billion (US$27.6 million), as investors fled the market.
"Inflation gossip fueled concerns on the floor, causing buyers to slow down, even after they had initiated a rally in the opening 15 minutes," said Nguyen Quang Minh, head of the brokerage department for a HCM City-based securities firm.
Blue chips tumbled, with Masan Group (MSN) down 3.94 per cent, insurer Bao Viet Holdings (BVH) down 2.38 per cent, Phu My Fertilisers (DPM) down by over 2 per cent, and software gaint FPT down 1.45 per cent.
Real estate developer Vincom (VIC) and Eximbank (EIB) were the only stocks among the market's leading shares by capitalisation to achieve gains on the day, with VIC closing up 1.38 per cent and EIB up 0.75 per cent.
Penny stocks receded from the previous day's profit-taking, causing 15 stocks to plunge to their floor prices, including Tay Nguyen Electricity Investment (TIC), Vien Dong Pharmaceutical (DVD), and Khang An Real Estate (KAC).
On the Ha Noi Stock Exchange, the HNX-Index fell back below the 100-point basis level, closing at 99.1 points – a decline on the day of nearly 1.5 per cent.
The value of trades dropped 12.6 per cent from the previous day to VND421.7 billion ($20.1 million), on volume of just 23.6 million shares.
In the final 90 minutes of the session, buyers fled the floor, weakening demand at a rate of about 191,000 shares per minute, Minh said.
Foreign investors also slowed down buys, picking up only net about 200,000 shares in HCM City while turning net sellers on the Ha Noi market by a marginal amount.
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