HA NOI – Shares plunged this morning on both national stock exchanges after the news yesterday that the central bank would not ease credit policy to rescue the stock market.
In a press conference yesterday afternoon, deputy governor Nguyen Dong Tien said loans to the real estate and securities markets were still listed in the bank's non-production group so these sectors would not be bank priorities.
"Monetary policy in 2012 continues to focus on macroeconomic stability and prioritises lending to the production sector," Tien emphasised.
This information was like a "thunderbolt" for investors who had rushed to buy shares in previous sessions in the hope that the central bank would ease credits for the securities market.
On the HCM Stock Exchange, the VN-Index closed down 0.71 per cent to 397.41 points.
Decliners outnumbered advancers by 131-85. Market value improved over yesterday, totalling VND791.5 billion (US$37.7 million) as the volume of trades increased to 45.7 million shares.
Most blue chips lost value, pushing the VN30 Index down 0.92 per cent to close today's session at 446.08 points.
Sacombank (STB) and PetroVietnam Finance (PVF) bottomed out. Vietinbank (CTG) was down 2.6 per cent; insurer Bao Viet Holdings (BVH) closed down 1.8 per cent; and Phu My Fertiliser (DPM) slid 1 per cent.
Eximbank (EIB) was the most active share of the morning with over 1.9 million shares changing hands, closing off 0.6 per cent to VND15,400 ($0.73).
Among shares included in the VN30, only a few posted gains, including Kinh Bac City Development (KBC) up 3.1 per cent, Ocean Group (OGC) up 1.1 per cent and Vinamilk (VNM) up 0.6 per cent.
On the Ha Noi Stock Exchange, the HNX-Index slid 2.16 per cent to close at 60.21 points, with losers outnumbering gainers by 143-87.
Trading value increased over yesterday to VND309.8 billion ($14.8 million) on a volume of nearly 36 million shares, with Ha Noi Housing Bank (HBB) being the most heavily traded stock on a volume of 4.13 million shares. HBB dropped to the floor price of VND4,500. – VNS