UPDATE 1-Vietnam Index Drops, More Falls Expected

Foreigners bought 218.44 billion dong ($10.5 million) worth of shares and sold stocks worth 155.01 billion dong, the exchange said.

Volume of shares traded: 90.58 million shares.

Value: 1.57 trillion dong.

In Hanoi, the HNX Index on the Hanoi Stock Exchange fell 4.26 percent to finish at 71.83 percent, with 95.02 million shares changing hand, valued at 907.97 billion dong.

Broker/trader comments

Nguyen Quang Huy, broker, VNDirect Securities:

“Stocks could fall further by 5-10 percent from today due to selling pressure following an increase in fuel prices and a considerable rally.”

“The (fuel price) hike also stoked fears about rising inflationary pressure.”

Giang Trung Kien, head of analysis, FPT Securities:

“Selling orders dominated the market today due to a higher-than-expected rise in fuel prices, which stoked concerns over mounting inflationary pressure.”

“Despite strong cash inflows recently, stocks could fall through the end of this week and early next week.”

Michel Tosto, director of institutional sales & brokerage, Viet Capital Securities:

“We expect the VN index to test the next support level at 423.5 points.”

Nguyen Hoang Long, director of brokerage, An Binh Securities:

“Stocks extended falls for the third straight day following a hike in fuel costs and after a significant rally recently.”

“However, stocks are unlikely to fall steeply as money will stay with the market. In the short term, the VN Index could fall back to 410 points.”

Tran Minh Hoang, analyst, Vietcombank Securities:

“A rise in fuel costs and mounting selling pressure from banking stocks after a sharp rise are major factors for the fall today.”

“Corrections are necessary for the market. Stocks may fall back to the strong support territory around 400 points in the near term.”