Scandals, inflation depress shares
HA NOI – (VNS) Stocks made a negative start in the new trading week yesterday, declining on both of the nation's stock exchanges, as recent scandals surrounding banking executives continued to shadow the market.
"The resignations of bank executives have fanned concerns over graver problems within the banking system, with scandals centred around top-rated lender Asia Commercial Bank," FPT Securities Co analysts wrote on the firm's website.
Banks are among most well-managed business entities in the country and their problems have undercut investor confidence in corporate equities across-the-board, they said, noting that the economic slowdown had already exposed critical drawbacks in corporate governance that had remained concealed during thriving economic times.
Investors have also begun to worry about a reheating of inflation, with news released yesterday that inflation in September rose 2.2 per cent over the previous month.
On the HCM City Stock Exchange yesterday, declines accelerated in afternoon trading, with the VN-Index concluding the session at 390.37 points, a decline of 1.29 per cent from last Friday's close. Trades were sluggish with market value declining 73 per cent to VND474 billion (US$22.6 million) on a volume of just 27.7 million shares.
Decliners outnumbered advancers by 164-57, with blue chips among the hardest hit.
Insurer Bao Viet Holdings (BVH), steelmaker Hoa Phat Group (HPG), property developer Hoang Anh Gia Lai (HAG) and PetroVietnam Finance (PVF) all dropped to their floor prices.
Most bank shares also posted losses, including Military Bank (MBB), Vietinbank (CTG) and Vietcombank (VCB). Only Eximbank (EIB) bucked the trend, gaining 4.3 per cent with almost 2 million shares changing hands.
The VN30-Index, tracking the exchange's 30 leading shares by market capitalisation and liquidity, closed down 0.66 per cent to 454.52 points.
On the Ha Noi Stock Exchange, the HNX-Index slumped 0.44 per cent to end the session yesterday at 56.46 points. The value of trades was a very meagre VND161 billion ($7.7 million), and the quantity of losing codes dwarfed gainers by 138-52.
Investors ignored the scandals surrounding Asia Commercial Bank buying up 1.8 million shares. ACB gained 5 per cent to conclude yesterday's session at VND17,200 per share.
Posting a heavy loss in the first half of this year, PetroVietnam Construction (PVX) was still the most-active share in yesterday's trading, with 2.8 million changing hands. However, PVX shares closed off 2.2 per cent at VND4,500 a share. — VNS