Stock Market Declines while Gold and Dollar Gains

The VN-Index lost 2.64 points to close at 382 Wednesday. The price of a tael of SJC gold went up by VND50,000 (US$3) and the value of the dollar on the free market climbed above VND19,000.

Following the State Securities Commission’s decision to increase the trading margin on the Ho Chi Minh City market from ± 2 percent to ± 3 percent, some investors decided to halt business to wait and see what will happen. This reversed the recent upward trend of the VN-Index, causing it to lose 2.64 points. However, volume increased by nearly 24.7 million units.

During the first trading session, prices of nearly all listed stocks increased. The trend reversed in the last session with only 20 out of 55 shares gaining.

The volume of sell orders in the last session was three and a half times as much as it was in the first session, resulting in a fourfold increase in the total volume to 24.1 million units worth nearly VND700 billion (US$42 million). Of these transactions, order matching was responsible for 22.3 million units worth VND630 billion (US$38 million).

The number or shares bought by foreign investors substantially exceeded the number of shares they sold. Some 6.1 million units worth VND243 billion (US$14.6 million) were bought, but only 0.66 units valued at VND24 billion (US$1.4 million) were sold.

The world gold price hovered at US$885 an ounce Wednesday afternoon. However, the price of a tael of SJC gold closed at 18.72 million (US$1,126), an increase of VND 50,000 comparing to the opening price and VND80,000 compared to the previous day. Total volume reached 6,000 taels, a rise of 30 percent compared to the previous week.

The Phu Nhuan Jewelry Joint-Stock Company announced that sales of PNJ-DAP gold had increased threefold compared to last week.

The value of the dollar on the free market skyrocketed above VND19,000, although the price listed at commercial banks remained unchanged. As of 5:30 p.m. jewelry shops in District 3 paid VND19,200 for one dollar Wenesday.

Despite a recent surge in price, the demand for hard currency is increasing.  

By Staff writers – Translated by Phuong Lan

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