Shares recede after two-day rally

HA NOI — Shares slumped on both of the nation's stock markets yesterday, led by a number of banking shares which receded from two prior days of gains.

Shares of Eximbank (EIB), Sacombank (STB), Asia Commercial Bank (ACB), Ha Noi Housing Bank (HBB) and Sai Gon-Ha Noi Bank (SHB), all dropped to their floor prices, while Vietinbank (CTG), Sai Gon Maritime Bank (SHC) and Nam Viet Bank (NVB) bucked the trend and posted gains.

Saigon Securities Inc analysts had said it would be difficult for bank shares to maintain prices after three consecutive days of solid gains. They also advised investors to be cautious, realise profits as soon as possible, and wait for reasonable prices before buying back in.

On the HCM City Stock Exchange yesterday, the VN-Index closed off 2.69 per cent to 480.21 points. Trading volume declined 15.5 per cent from the previous session to around 80.8 million shares, worth a total of VND1.9 trillion (US$95 million).

Decliners outnumbered advancers by 208-28, with Phu My Fertilisers (DPM) and Vietinbank (CTG) the only codes out of the 10 leading shares on the market by caitalisation to post gains.

Tan Tao Investment Industry Corp (ITA), with 5.54 million traded, was the most-active share, closing unchanged at VND16,300 ($0.82) per share.

On the Ha Noi Stock Exchange, the HNX-Index retreated by 4.29 per cent to end the session at 115.43 points. The volume of trades decined by 27 per cent to about 57.7 million shares, for a total value of VND1.1 trillion ($55 million).

Losses outnumbered gains by 288-43, with 123 codes fell to the floor. Kim Long Securities (KLS) – the most active share nationwide with 7.1 million exchanged – also fell to the floor at VND16,100 ($0.81) at the close.

Au Viet Securities Co deputy director Le Anh Thi said the market could continue to decline through early next week, when a large number of stocks would reach investor accounts after being acquired this week, under the T+4 system.

"However, heavy trading volume is a positive sign," Thi said. "If this can be maintained for one or two weeks, it will help the market rise more stably."

Foreign investors remained net buyers on both exchanges yesterday, picking up a combined net of almost VND120 billion ($6 million). They bought most heavily into financial shares, including Vietinbank (CTG), Vietcombank (VCB), Saigon Securities Inc (SSI) and Bao Viet Securities (BVS).

Source: vnagency.com.vn