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VietNamNews

Shares continue to decline

Update: January, 07/2012 - 08:56

HA NOI — Shares fell further on both national stock exchanges yesterday.

On the HCM City Stock Exchange, the benchmark VN-Index closed at 336.73 points, a loss of 1.2 per cent from the previous session. The value of trades rose by 38 per cent, however, totalling VND420.4 billion (US$20 million) on a volume of over 29 million shares.

Losers outnumbered gainers by 148-66, and most blue chips continued to tumble. Insurer Bao Viet Holdings (BVH), food processor Masan Group (MSN), PetroVietnam Finance (PVF) and Saigon Securities Inc (SSI) each bottomed out.

There were nevertheless a few bright spots among the 10 leading shares by capitalisation, with Vietinbank (CTG) up 1.7 per cent, Eximbank (EIB) up 0.7 per cent, software giant FPT (FPT) up 0.8 per cent and Sacombank (STB) up 1.3 per cent.

STB was also the most-active share with nearly 3.1 million traded.

Refrigeration & Electrical Engineering Corporation (REE) and a group of local investors had also reached an agreement for REE to sell over 42 million STB shares it holds, the newspaper Dau tu chung khoan (Securities Investment) reported. The deal is estimated to be worth VND700 billion ($33.3 million).

STB shares account for the largest proportion in the investment portfolio of the HCM City-based firm, which also holds investments in real estate, electrical generations and water resources. REE president Nguyen Thi Mai Thanh said the company's long-term strategy was to focus on power projects in the coming years.

"This divestment is one goal in the strategy, and we have reached it thanks to good negotiations," Thanh said.

On the Ha Noi Stock Exchange yesterday, the HNX-Index concluded the session at 55.43 points, a decline of 0.8 per cent. The value of trades fell 5.7 per cent to just VND171.3 billion ($8.2 million) on a volume of 22.6 million shares. Losers outnumbered gainers by 147-58.

Kim Long Securities Co (KLS) and VNDirect Securities Co (VND) were the most-active share, each with around 3.3 million exchanged.

Foreign investors continued to sell off shares in HCM City yesterday, unloading a net of VND42.3 billion ($2 million) worth of shares, but they were net buyers in Ha Noi by a margin of VND4.3 billion ($204,760).

In a bid to spark the securities market, regulators are discussing eliminating the settlement period for market transactions and allow shares to be flipped the same day.

The initial proposal made to regulators by the Viet Nam Association of Securities Business was to reduce the settlement period from the transaction date plus four days (T+4) to T+2.

But same-day settlment (T+0) would bring the nation's stock market to the standard of advanced markets around the world, said Bao Viet Securities Co general director Nhu Dinh Hoa. — VNS

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