On the HCM City Stock Exchange, the VN-Index was off 0.59 per cent at 500.40 points while the VN30 tracking the top 30 shares by market capitalisation and liquidity was down 0.38 per cent at 554.59 points.— Photo dddn

HA NOI (Biz Hub)— Stocks failed to sustain yesterday's gains as indices decreased on both national stock exchanges this morning, driven by widespread slumps on the global markets.

On the HCM City Stock Exchange, the VN-Index was off 0.59 per cent at 500.40 points while the VN30 tracking the top 30 shares by market capitalisation and liquidity was down 0.38 per cent at 554.59 points.

Investor caution made trading sluggish with just 27.7 million shares worth VND455.3 billion (US$21.7 million) changing hands by the end of the morning.

Tan Tao Investment Industry (ITA) continued to lead the southern market on trades of 1.84 million shares at the value of VND7,600 a share.

According to many analysts, steep declines around global stock markets this morning were caused by the likelihood that the US Federal Reserve will stop its quantitative easing programme soon. This made investors more cautious.

Besides, information that the Government had sought National Assembly for approval to reduce corporate income tax from 25 per cent to 22 per cent from January 1 was not new and failed to boost local investor psychology.

On the Ha Noi Stock Exchange, the HNX-Index also lost 1.4 per cent to finish this morning at 64.11 points with a low trading value of just VND144 billion ($6.9 million).

Property developer FLC Group (FLC) was again the most active code with nearly 2.5 million shares changing hands at VND7,100 each. - VNS