Vietnam index ends down 4.7 pct, buying may support

Reuters

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Vietnam's benchmark VN Index ended down 4.68 percent on Monday at a four-month low as investors continued selling due in part to repayment pressure, but the fall may not last long as bargain hunters could soon step in, an analyst and traders said.

The index lost 25.41 points to close at 517.05, the lowest since Jan. 9, 2014, Reuters data show.

"There could be one or two more spans of decline before the market starts rising again," said Nguyen Tuan, a deputy manager of An Binh Securities. Each span would be equal to the drop in percentage on Monday, he said.

A fall in share prices could have prompted a group of investors to offload stocks to repay the loans taken for investment in equities, while other retail investors were worried and could continue selling, he said.

Major investors, both Vietnamese and foreigners, have been buying as shares become cheaper, and their purchase in coming days could provide support to the market, he said.
Traders said the fall on Monday was also caused by worries over tension in Vietnam's waters caused by China since early this month.

Pharmaceutical firm DHG topped the losers' list, with shares losing 6.98 percent, followed by technology firm FPT Corp with a 6.91 percent fall.

Companies in the oil and gas sector also lost ground, including PV Drilling and Petrovietnam Gas.

Here is a snapshot of the VN Index at the close (0801 GMT).
.
VN Index
517.05
PREV. CLOSE 542.46
% CHANGE -4.68%
HIGH
536.82
LOW 512.25
Change (%) 1-mnth -10.077
Change (%) 3-mnth -1.328
Change (%) 1-year 11.567
52-week high 609.46
25-Mar-14
52-week low 462.13
30-Aug-13

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