Vietnam index sheds 0.71 pct on looming supply
HANOI, Aug 5 Reuters - Vietnams stock index closed lower for the third straight session on Monday on concerns about extra stock supply dampening prices, brokers said.The Vietnam Index <.VNI> dipped 0.71 percent, or 1.39 points, to end at 193.67. Turnover rose to 127,600 shares, worth 2.99 billion dong $195,591, from 92,400 shares last Friday.
Nine stocks ended down and two were flat. Five ended up and one was untraded. A broker in Hanoi said investors sold shares on fears that two new listings later this month would pull prices down further.
"They thought the extra supplies would break the current balance and share prices would drop," he said.
Ho Chi Minh City-based Khanh Hoi Export Import Co Khahomexand Seafood Co. No 4 TS4 have said they would list later this month, bringing the number of firms traded on the countrys two-year-old bourse to 19.
The latest edition of the official Dau Tu Chung KhoanSecurities Investment magazine also quoted a senior official from market watchdog State Securities Commission as saying the exchange would have up to 30 companies listed by year-end.
A broker in Ho Chi Minh City said selling on Monday was also linked to a lack of factors to stimulate trading. "They didnt see anything in sight that could lift prices up, and they didnt want their money idle, so they unloaded shares to liquify their capital," he said.
Market heavyweight Refrigeration Electrical Engineering Co REE dominated the session with 44,500 shares changing hands. It closed 300 dong lower at 21,000 dong, the fourth consecutive session it had fallen or closed flat.
Last Friday saw an extra 7.5 million of REE shares pumped onto the market, which analysts said added to the current slump.
Bien Hoa Biscuit and Candy Co <BBC.HM> Bibica sank to a lifetime low for the second time in less than three weeks on concerns about its financial performance.
It shed 300 dong to close at 19,000 with 28,400 shares changing hands, the second most heavily traded stock in the session.
Mondays session also saw 27,800 shares of freight forwarder General Forwarding & Agency Corporation Gemadepttraded via off-exchange deals at 41,000 dong per share.
Details of share trading on Monday share value in dong:
AUGUST 5 AUGUST 2 CHANGE
VN Index 193.67 195.06 -0.71
Total share volume 127,600 92,400 38.10
Total traded value 2.99 bln 2.34 bln 27.78
- - - -
SHARE CLOSE PRV. CLOSE PCT CHANGE VOLUME
AGF 28,700 29,100 -1.37 4,100
BBC 19,000 19,300 -1.55 28,400
BPC 22,000 22,000 0.00 100
BT6 20,000 20,200 -0.99 5,000
BTC 22,800 23,400 -2.56 100
CAN 21,600 22,200 -2.70 300
DPC 16,900 16,500 2.42 11,000
GIL 43,200 42,000 2.86 2,900
GMD 40,600 41,000 -0.98 5,000
HAP 36,700 36,700 0.00 0
LAF 22,000 22,000 0.00 100
REE 21,000 21,300 -1.41 44,500
SAV 19,600 19,500 0.51 3,200
SGH 15,500 15,900 -2.52 400
TMS 37,000 37,500 -1.33 4,600
TRI 27,300 27,300 0.00 2,100
NOTES:
-- The STC, which began trading in July 2000, allows prices to change only in multiples of 100 dong for shares below 50,000 dong, of 500 dong for shares between 50,000 and 100,000 dong and of 1,000 dong for shares above 100,000 dong to ensure a three percent daily price movement limit.
-- The market trades five days a week and matches buying and selling orders once at the end of each one-hour session. Matching results are in the above table.
-- from March 1, the STC allowed deals in listed shares via direct negotiations between investors, whose results is reported to the STC on the day for summing up.
US$1 = 15,287 dong
