Market bearish as investors’ sentiment hurt by loss-making firms

The Ho Chi Minh Stock Exchange extended its losing run to six days in a row on Tuesday, as investors were worried about listed firms placed under scrutiny after reporting losses last year, a broker said.

VN-Index of 176 leading firms and closed-end funds closed at 263.07, a slump of 9.2 points, 3.4 percent. Among the index members, 16 advanced, 131 fell and 25 were unchanged.

“Investors were standing on the sidelines as they were scared of the news about increasing numbers of listed firms that were placed under the watch list,” one broker in Ho Chi Minh City told SGGP today.

The HCMC exchange, Vietnam’s main bourse, placed five more companies under scrutiny, increasing the number of ‘specially-monitored’ firms to 11 after they posted losses last year.

The companies are: Cables & Telecommunications Material Joint-Stock Co., known as Sacom, Hapaco Corp., Pha Lai Thermal Power Joint-Stock Co., Taya Vietnam Electrics Wire & Cable Joint-Stock Co. and Tan Dai Hung Plastic Joint-Stock Co., according to a report on the exchange’s website.

Both the HCMC-based Sacom, and Hapaco, posted a loss of about VND67 billion ($3.8 million) last year.

Pha Lai, Vietnam’s largest electricity producer by market value, posted a loss of VND207 billion.

Taya said in Dau Tu Chung Khoan that it lost VND110 billion while the 2008 loss of Tan Dai Hung was VND51 billion.

The other companies that the exchange previously placed on the watch list include: Refrigeration Electrical Engineering Corp., Bien Hoa Sugar Joint-Stock Co., Vitaly Joint-Stock Co., Viet-Han Corp., Saigon Beverages Joint-Stock Co., and Bach Tuyet Cotton Joint-Stock Co.

Cables & Telecommunications Material Joint-Stock Co. (SAM) ended two days of gains, falling 4.9 percent to close at a five-year low of VND11,700. The company posted a loss of about VND67 billion last year, which prompted the exchange to add the company and four others on a watched list.

Danang Rubber Joint-Stock Co. (DRC) fell 1.7 percent to close VND17,000. The company, based in the central city of Da Nang, lowered its profit forecast for this year by 15 percent to VND40 billion, the Vietnam Rubber Association said on its website yesterday. Sales may drop seven percent to VND1.2 trillion this year, the Association said.

The Hanoi Securities Trading Center continued its retreat today, with the HaSTC-Index slumping 2.24 percent to an all-time low of 88.01 points.

Reported by Thieu Gia

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