State Bank denies increased capital reserve ratio rumours after shares slide

HA NOI — Shares retreated yesterday on the two national exchanges, as rumours circulated that the State Bank of Viet Nam was considering imposing higher capital reserve ratios on commercial banks as a measure that would help curb inflation by reducing the supply of currency in circulation.

Both domestic and foreign investors were concerned about the rumours, said Au Viet Securities Co analyst Dang Lan Huong, and, following the impact on markets in the morning, the State Bank moved late yesterday to deny them.

However, faced with a possible further depreciation of the Vietnamese dong, a number of investors have shifted investment from securities into US dollars, causing the price of the greenback to increase in recent days on the black market, Huong said.

"Market developments have been dull throughout the week, defeating investor expectations of an exciting week and a return of new investment after the New Year," she added, predicting the market would likely continue to tread water for the time being.

Trading volumes improved slightly on the HCM City Stock Exchange yesterday, but the VN-Index slid in the final minutes of trading, closing at 481.86, slightly lower than the previous session's mark.

Blue chips continued to perform poorly. Out of the 10 leading shares by capitalisation, only insurer Bao Viet Holdings (BVH) and industrial conglomerate Hoa Phat Group (HPG) posted gains.

Bank shares, which registered losses, were still the most heavily-traded stocks on the southern bourse. Eximbank (EIB), the most-active share with over 1.8 million traded, declined by 1.3 per cent, while Sacombank (STB) closed unchanged on a volume of 1.15 million shares. Vietinbank (CTG) and Vietcombank (VCB) each fell by around 0.4 per cent.

On the Ha Noi Stock Exchange, the HNX-Index dropped by 1.26 per cent to close at 110.04. The volume of trades rose 35 per cent to 26.5 million shares, while the value of trades increased by 32 per cent to VND508.7 billion ($24.2 million).

Ha Noi Bank (HBB) reclaimed the position of the most active stock on the Ha Noi bourse, with over 2.4 million changing hands. HBB closed unchanged at VND11,100 (0.53) per share.

Foreign investors continued as net buyers on both exchanges yesterday, but on a reduced volume of 1.6 million shares worth a net of VND30.4 billion ($1.4 million).

Source: vnagency.com.vn