HA NOI — Heavy sales of real estate stocks on the HCM City Stock Exchange yesterday forced the VN-Index down to a six-month low of 444.85 points, a loss of 2.2 per cent.
Property stocks declined by an average of 3.3 per cent, with Hoang Anh Gia Lai (HAG) and Kinh Bac Corp (KBC) each dropping to their floor prices, followed by Vincom (VIC), which fell by 4.4 per cent, and Tan Tao Industrial Park (ITA), which closed down 4.3 per cent.
Analysts of HCM City Securities Co said that real estate and construction stocks have taken a beating as investors came to realise that high interest rates were likely to remain in place for the remainder of the year.
"Whatever fears of a hard landing for the overall economy, there is no doubt of the widespread pain in this market," said the firm's head of research, Fiachra Mac Cana. "Prices are weak in all segments and few sales are being reported in the residential segment."
Earnings of property and construction companies this year might well consist of book earnings left over from 2010 coupled with some land sales, Mac Cana added.
Other stocks influential on the VN-Index also had a bad day, including Masan Group (MSN), which dropped to its floor price, and insurer Bao Viet Holdings (BVH). Losers outnumbered gainers overall yesterday by 178-51.
Trading was sluggish, reaching a value of just VND492.3 billion ($23.4 million) on a volume of 25.5 million shares. Eximbank (EIB) was the most-active share with nearly 1.1 million traded
Viet Capital Securities Co analysts suggested that a lack of positive economic news has kept investors away from the market, despite many share prices nearing their all-time lows. These shares were appropriate for long-term investors, but short-term investors should carefully monitor market data and wait on positive economic developments before returning to the market, they suggested.
On the Ha Noi Stock Exchange, the HNX-Index fell for the ninth consecutive day to finish at 78.24 points, a decline of 0.79 per cent. The volume of trades totalled 23.2 million shares worth only VND284.3 billion ($13.5 million), while decliners outnumbered advancers by 176-82.
VNDirect Securities Co (VND) was the most-active share, with a volume of 1.7 million. — VNS
Property stocks declined by an average of 3.3 per cent, with Hoang Anh Gia Lai (HAG) and Kinh Bac Corp (KBC) each dropping to their floor prices, followed by Vincom (VIC), which fell by 4.4 per cent, and Tan Tao Industrial Park (ITA), which closed down 4.3 per cent.
Analysts of HCM City Securities Co said that real estate and construction stocks have taken a beating as investors came to realise that high interest rates were likely to remain in place for the remainder of the year.
"Whatever fears of a hard landing for the overall economy, there is no doubt of the widespread pain in this market," said the firm's head of research, Fiachra Mac Cana. "Prices are weak in all segments and few sales are being reported in the residential segment."
Earnings of property and construction companies this year might well consist of book earnings left over from 2010 coupled with some land sales, Mac Cana added.
Other stocks influential on the VN-Index also had a bad day, including Masan Group (MSN), which dropped to its floor price, and insurer Bao Viet Holdings (BVH). Losers outnumbered gainers overall yesterday by 178-51.
Trading was sluggish, reaching a value of just VND492.3 billion ($23.4 million) on a volume of 25.5 million shares. Eximbank (EIB) was the most-active share with nearly 1.1 million traded
Viet Capital Securities Co analysts suggested that a lack of positive economic news has kept investors away from the market, despite many share prices nearing their all-time lows. These shares were appropriate for long-term investors, but short-term investors should carefully monitor market data and wait on positive economic developments before returning to the market, they suggested.
On the Ha Noi Stock Exchange, the HNX-Index fell for the ninth consecutive day to finish at 78.24 points, a decline of 0.79 per cent. The volume of trades totalled 23.2 million shares worth only VND284.3 billion ($13.5 million), while decliners outnumbered advancers by 176-82.
VNDirect Securities Co (VND) was the most-active share, with a volume of 1.7 million. — VNS
