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VietNamNews

STB slump fuels VN-Index slide

Update: February, 16/2012 - 12:05

 

Investors monitor transactions at the HCM City-based trading floor of Sacombank Securities Co. — VNA/VNS Photo Hoang Hai
HA NOI — Shares of Sacombank (STB) sank to their floor price for a fourth consecutive session yesterday, helping drag down indices on the HCM City Stock Exchange.

Over six million STB shares were exchanged yesterday on the latest news that Sacombank would increase its charter capital by 17 per cent this year to VND11.7 trillion (US$557.1 million).

Other blue chips were mixed. While Tan Tao Investment and Industry (ITA) and software producer FPT posted gains of over 1 per cent, insurer Bao Viet Holdings (BVH) shed 1.9 per cent of its value, and real estate developer Hoang Anh Gia Lai (HAG) and PetroVietnam Finance (PVF) each closed down by over 1 per cent.

The VN-Index closed off overall by 0.23 per cent to 396.51 points, while the VN30 Index closed at 443.54 points, a loss of 0.57 per cent from Wednesday.

The value of trades declined by 17 per cent from the previous session, totalling VND658 billion ($31.3 million) on a volume of 34.8 million shares. Advancers managed to outnumber decliners, however, by a margin of 108-83.

With gainers edging losers by 118-95 on the Ha Noi Stock Exchange, the HNX-Index reversed Wednesday's losses, gaining 0.61 per cent before ending the session at 60.58 points. The value of trades on the northern bourse decreased by 10 per cent, meanwhile, to VND265.3 billion ($12.6 million), as 32.3 million shares changed hands.

Kim Long Securities (KLS), with nearly 3.8 million shares traded, was the day's most-active share before closing up 4.5 per cent to VND9,200.

Many analysts continued to believe that the market was weighed down by the tight credit policies restricting bank lending to securities investors, but analyst Pham Kinh Luan told the newspaper Dau tu Chung khoan (Securities Investment) that it was too early to say whether the central bank's target of 16 per cent credit growth this year was too low and would have a negative impact on cash flows into the stock market. Meanwhile, Directive No 1 created different credit growth targets for different credit institutions.

"Directive No 01 creates a useful tool to support the stock market, one which will help investors better select bank shares," said Luan.

Foreign investors decreased their buys on both exchanges yesterday but still picked up a net of VND8 billion ($381,000) worth of shares. — VNS

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