Uncertainty lingers over bourses

HA NOI — The VN-Index yesterday inched up 0.21 per cent to close at 478.45 points as the market continued to drift sideways with no apparent up or downward trend in sight.

"In the context of the global economic situation, our economic performance in 2010 was acceptable, reflecting the Government's efforts. However, there are still concerns over macroeconomic problems including inflation, budget and trade deficit, and payment imbalances," said Tran Hoang Ngan, a member of the National Financial Monetary Policy Advisory Council.

"As a result, the US dollar exchange rate increased, impacting on inflation."

Viet Nam's inflation hit 22 per cent in 2008 and reached double-digit figure of 11.75 per cent last year, with regional inflation at just 3.7 per cent in 2010.

Credit interest rates increased significantly, but credit growth still climbed to 27.65 per cent, 2 per cent higher than targeted. Viet Nam needed bold measures to further control credit activities of commercial banks and ensure quality of loans, Ngan said.

The Government set an inflation target of 7 per cent this year, meaning concerned State bodies would make great efforts to keep the rate below 3.5 per cent in the first half of the year.

However, the target would not be easy to realise because demand skyrockets in the first two months of the year before Tet (Lunar New Year). "After Tet, the cost of oil, power and water are usually adjusted up and the CPI could rise by up to 1.5 per cent in a month," he added.

"Therefore, to curb inflation, we have to tighten budget spending and cut investment in unnecessary public projects while controlling the trade deficit."

Also yesterday, the Government asked the State Bank of Viet Nam to co-ordinate with the Ministry of Finance and relevant State agencies to control inflation and the trade deficit and maintain stable monetary, credit and banking systems.

Particularly, the central bank would have to issue flexible monetary policies and carefully co-operate with others to control the growth of credit supply and ensure appropriate interest rates.

Trading volume on the HCM City bourse increased remarkably yesterday with 41.2 million worth VND1.19 trillion (US$56.7 million) changing hands today, compared to an average of merely 30 million shares with a value of around VND500 billion ($23.8 million) over the past six days.

Advancers outnumbered decliners 150 to 61, while 64 remained steady.

Thirteen stocks hit their ceiling prices, including Sao Vang Rubber (SRC), De Tam (DTA), Becamex (IJC), Hamico Binh Thuan Mineral (KSA), Lilama 10 (L10), Rang Dong Lamp (RAL), and especially Vinpearl (VPL).

VPL reached its ceiling price for the fifth consecutive session and made gains for the 16th session in a row.

The HN-Index also gained 1.47 per cent to close at 106.30. In contrast with the HCM City bourse, trading volume in Ha Noi this morning decreased slightly from yesterday to 24.6 million shares, worth VND469.2 billion ($22.3 million).

The number of gainers was roughly twice the number of losers, 197 to 87, while 88 remained unchanged.

Source: vnagency.com.vn