Vietnam's Hanoi stock market falls on overwhelming negative information

The stock market in Vietnam's capital Hanoi plunged sharply Friday during the week due to lack of positive supporting information and full of negative news. The bourse ended the week as losing 5.69 points, or 7.12 percent compared with the previous week's close. Stock market index of Vietnam's capital Hanoi, HNX-Index, closed at 74.19 points on Friday, up 2.54 points, or 3.54 percent, against Thursday. A total of 65.04 million shares worth 568.42 billion Vietnamese dong (26.93 million U.S. dollars) were traded at the Hanoi Stock Exchange on Friday, a decrease of 39.16 percent in volume and 43. 83 percent in value against Thursday. Prices of 182 stocks went up, 54 stocks fell down, while 36 stocks remained unchanged. During the week, the index experienced two ups and three downs, posting the highest level of 77.36 points on Monday and the lowest level of 71.66 points on Thursday. Last week, the HNX-Index fluctuated with a range between 79.65 points and 79.88 points. HNXFF-Index, the new benchmark to replace the HNX-Index from December 2014, closed at 74.82 points, up 2.44 points or 3.37 percent on Friday. As of Friday, the HNX-Index increased 6.35 points, or 9.36 percent over the last trading session on December 31, 2013. On Thursday, HNX-Index posted a sharp decrease over the previous trading session of 4.9 points or 6.4 percent to hit 71.66 points. Local insiders said this was one of the most panic sessions of Vietnam's capital Hanoi stock market. Despite efforts to calm investors down made by State Securities Commission of Vietnam as well as by local analysts, selling stocks in large-scale in HNX-Index on Thursday led to an "evaporation" of over 7.32 trillion Vietnamese dong (347.29 million U.S. dollars). Local analysts said investors of the Hanoi bourse are sensitive to negative news, showing their worries and concerns over economic cases that are on trial. Nguyen Hoang Hai, vice chairman of Vietnam Association of Financial Investors said on Friday that the plunge of the market index on Thursday's session presented the fact that trivial investors, estimated at 80 to 90 percent of the total investors, are vulnerable to bad news and tend to sell out their stocks while organized investors will be more patient to analyze carefully before any moves. Echoing Hai, Nguyen Hong Nam, deputy director general of Saigon Securities Incorporation said the sharp decrease of the market provides a chance for more patient investors to buy stocks at cheap prices. Reality showed that foreign investors bought much during the session, said Nam.