Updated  
May, 30 2012 09:20:00

Shares plunge despite good news

HA NOI — Shares continued to slide yesterday despite positive news about interest rates and predictions by some analysts that stocks on the domestic market could surge by as much as 65 per cent next year.

On the HCM City Stock Exchange yesterday, the VN-Index retreated by nearly a per cent to 431.44 points, while the VN30 Index, tracking the market's top 30 shares, also shed 0.5 per cent to close at 510.81 points.

The volume of trades reached only 47.7 million shares, however, for a total value of VND720.3 billion (US$34.3 million), a 24.3 per cent decrease from Monday's level.

A few blue chips managed to post gains during afternoon trading, helping constrain the declines of indices, including Becamex Infrastructure Co (IJC), Sacombank (STB), property and entertainment services developer VinGroup (VIC), dairy giant Vinamilk (VNM) and sugar processor Bourbon Tay Ninh (SBT), which hit its ceiling price of VND19,100 per share.

Meanwhile, recently-listed PetroVietnam Gas (GAS) lost 2.4 per cent, sinking nearly back to its initial price on its first trading day.

During a meeting yesterday, State Securities Commission chairman Vu Bang announced some possible changes to boost the market.

"Market liquidity remains a big problem even though trading hours were extended," Bang said. Trading margin ratios had also limited the natural movement of prices, he added. The commission was therefore likely to suspend trading for 30 minutes on stocks that fluctuated over 10 per cent.

To both lure foreign investment and protect domestic benefits, Bang said the ministries of finance and planning and investment should allow foreign investors to put more money into domestic firms by means of a special class of non-voting shares.

On the Ha Noi Stock Exchange, the HNX-Index fell by 0.4 per cent to just 75.30 points. Only 32 million shares were traded, for an overall value of VND333.26 billion ($15.8 million), half of Monday's value.

Real estate developer Sacomreal (SCR) was the most-active share nationwide with around 3.2 million traded.

Foreign investors concluded yesterday as buyers on both bourses but by a net margin of only VND10.3 billion ($490,470). — VNS

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