Traders in Vietnam revert to cautious approach

HA NOI (VNS)— Wednesday's trading boost as a result of the ‘Obama effect' appeared to be wearing off yesterday, with both stock exchanges seeing a fall in transactions as traders reverted to caution.

Purchasing power slowed yesterday, with buyers placing orders only on low prices, FPT Securities Co analysts wrote on their company website.

The VN-Index on the HCM City Stock Exchange was approaching 387 points on November 1 before panic selling set in and the session finished oversold. "This may be the reason why investors became cautious again," the analysts said.

However, yesterday's plus side was that investors did not sell off, keeping a balance between supply and demand towards the end of the session.

Shares continued to add value in HCM City but lost ground in Ha Noi.

The VN-Index gained 1.23 per cent to reach 385.60 points.

Transaction value on the bourse dropped slightly to VND364.45 billion (US$17.3 million), as 23.3 million shares changed hands.

Of the 30 leading shares tracked by the VN30, advancers outnumbered decliners by 17 to 5. Stocks in the green included insurer Bao Viet Holdings (BVH), commercial baker Kinh Do (KDC) and Vietcombank (VCB), which all hit their ceiling prices and helped the index close up 1.1 per cent at 455.78 points.

Foreign investors pushed money into HCM City's blue chips, which - if it continues today - will be a sign of improvement.

On the Ha Noi Stock Exchange, the HNX-Index shed 0.97 per cent, falling to 51.08 points.

Losers outstripped gainers by 108-60.

Market value slid 30 per cent compared to Wednesday's data, reaching VND135.8 billion ($6.4 million) on a volume of 22.4 million shares.

Blue chips in Ha Noi also had a day to forget, sending the HNX30 down 1.56 per cent to 91.69 points.

An absence of supportive information halted the rally in the capital. Meanwhile, the ministries of Finance, and Industry and Trade have announced there would not be a cut in the retail petrol price. — VNS

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