Indexes tread water as lower rates fail to kick in

Monday, May 20, 2013 11:17

Stock exchange. VNA/VNS Photo Hoang Hai

HA NOI (Biz Hub) — On the HCM City Stock Exchange last week, the VN-Index rose 0.31 per cent over the previous Friday's close to 487.60 points.

However, both trading value and volume declined, plunging more than 33 per cent to average VND832.1 billion (US$39.6 million) and 45.1 million shares per session.

Blue chips continued to be favoured by foreign investors. Net buying value last week in HCM City reached more than VND170 billion ($8 million), but the scale of transactions made by foreign investors, especially on the Ha Noi Stock Exchange, has recently narrowed and had virtually no major impact on the market.

On the Ha Noi Stock Exchange, the benchmark HNX-Index lost 0.05 per cent compared to the previous week to finish at 60.45 points.

Trading was bleak, averaging only VND200.4 billion ($9.5 million) on a volume of 26 million shares in a single trading day.

"The issue of reducing interest rates is cooling down as there are several barriers preventing small banks from doing so," Dao Hong Duong, PetroVietnam analyst noted.

However, cash flow into low-price shares was expected to support the stock market, he added.

Meanwhile, listed companies posted more positive business results in the first quarter this year compared to the same period last year, including logistic firm Gemadept (GMD), Pha Lai Thermalpower (PPC) and construction giant Vinaconex (VCG). However, the majority of such businesses are listed on the HCM City Stock Exchange.

"The southern exchange is hoping to attract more cash," Duong said. — VNS

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