Staff work at the Ha Noi Stock Exchange. The HNX-Index inched up 0.34 per cent to end at 87.45 points.— VNA/VNS Photo Huy Hung
Shares dropped slightly yesterday on the HCM Stock Exchange as investors remained cautious ahead of the results of the US Federal Reserve (Fed) meeting.
The benchmark VN-Index edged down 0.22 per cent to close at 713.14 points. The southern market increased 0.64 per cent on Tuesday. On the Ha Noi Stock Exchange, the HNX-Index inched up 0.34 per cent to end at 87.45 points.
Blue chips led the downturn as 18 of the 30 largest shares by market value and liquidity slumped and only eight advanced.
The results of the two-day Fed meeting will be revealed today in Vietnamese local time. However, according to analysts, this rate hike, if any, is forecast to have little impact on the emerging and frontier markets.
Unlike the previous two rate hikes, currencies in emerging and frontier markets have maintained positive movements since the end of December until now and there has been no sign of foreign capital withdrawal from these markets.
Investors were calm before Fed’s announcement due to advance warning from the US central bank and stable developments in emerging markets are expected to keep foreign capital inside these countries, said Nguyen The Minh, head of the capital market analysis division at Saigon Securities Inc.
“When the decision is announced, the market will be able to fluctuate. But in my opinion, such volatility will be short term and the market will soon be back to normal,” Minh told the website ndh.vn.
After a surge in the past rallies, shares in developed markets in the EU and United States have become more expensive in comparison with counterparts in emerging markets and foreign funds will unlikely sell off here, Minh added.
Yesterday, a total of 178 million shares worth nearly VND3.9 trillion (US$171 million) were traded in the two Vietnamese exchanges. Foreign investors were net buyers for a combined value of VND56 billion in the two markets.
Losers included market-leading stocks in financial, energy and steel sectors such as Vietinbank (CTG), Vietcombank (VCB), Military Bank (MBB), Saigon Securities Inc (SSI), PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), Hoa Phat Group (HPG) and Hoa Sen Group (HSG).
After a hot rising streak, many realty shares corrected down, including Hoa Binh Construction (HBC), Novaland Investment (NVL) HCM Infrastructure and Investment (CII), Kinh Bac City Development (KBC), Tan Tao Investment Industry (ITA) and Coteccons Construction (CTD). — VNS