Stocks tumbled in Ho Chi Minh City and posted modest gains in Hanoi on October 31 on low demand and investor caution.
On the Ho Chi Minh City Stock Exchange, the VN-Index slid more than 0.3 percent to 497.41 points.
Trading value reached only 57 percent of the October 30 level,
totalling just 688 billion VND (32.4 million USD) on a volume of 43.3
million shares.
The VN30, composed of the southern
exchange’s 30 leading shares by capitalisation and liquidity, also lost
0.3 per cent to 555.56 points.
Blue chips were
sluggish, with more than half losing ground. Only five managed to
advance, gaining between 0.3-1.6 percent.
VietCapital Securities Co analysts alleged that yesterday’s decline was
in the accumulation phase. “Therefore, a steep fall is unlikely to
happen,” they said.
After the accumulation phase comes the markup phase, where prices break out of their range and begin a sustained uptrend.
The Vietnam Investment Securities Co also said that although demand was low, sell-offs were unlikely.
“In the short term, domestic and global economic movements will not
significantly impact the market, and shares will be traded according to
investor demand,” said Bao Viet Securities Co analyst Tran Hai Yen.
However, she remained more cautious than other analysts, noting that
supply and demand could cause heavy sales if cash inflow did not
improve.
On the Hanoi Stock Exchange, the HNX-Index ended at 61.64 points, up 0.09 per cent.
With only 15.76 million shares changing hands, the value of
transactions declined 15 per cent over the previous session to 156.5
billion VND (7.3 million USD).
The HNX30, tracking the 30 largest stocks on the bourse, added 0.3 percent to close at 115.42 points.
Foreign investors concluded the day as net buyers in Hanoi by a margin
of 8.4 billion VND (396,200 USD), while they were sellers in Ho Chi
Minh City by 6.5 billion VND (306,600 USD).-VNA