HA NOI — Stocks tumbled yesterday following Wednesday afternoon's surprise announcement that petrol prices would be increased by 10 per cent, setting off new fears of an inflationary spike.
|Transactions are being carried out at the Vietnam Investment Securities Co. Stocks tumbled yesterday on new fears of an inflationary spike. — VNA/VNS Photo Hoang Lam
Deputy Minister of Finance Vu Thi Mai admitted yesterday that the higher petrol prices would add 0.85 per cent to the year's inflation rate.
Closing yesterday's session, sell pressure continued to send shares down on both exchanges. Both the VN-Index and VN30 on the HCM City Stock Exchange finished off by around 3 per cent, reaching 431.66 and 489.05 points, respectively.
The value of trades rose 14.3 per cent over Wednesday's level to VND1.6 trillion (US$76.2 million), while volume fell over 10 per cent to about 90.6 million shares.
Over half of the 30 stocks tracked by the VN30 bottomed out, with only three hitting their ceiling prices. All were real estate developers: Sudico (SJS), HCM City infrastructure Investment (CII) and Khang Dien House (KDH).
Trades dried up on the Ha Noi Stock Exchange, and the HNX-Index tumbled by nearly 4.3 per cent to 71.83 points. Market value declined 17.5 per cent, totalling about VND908 bilion ($43.2 million) on a volume of 95 million shares.
Habubank (HBB), after several sessions of closing at ceiling prices, yesterday retreated by 1.4 per cent. However, HBB remained the most-active share nationwide on a volume of over 13.3 million.
The head of the trading department at Woori Securities Co, Dang Ngoc Hoa, said that, from his personal observations, many investors still have not noticed that trading hours have been extended into the afternoon hours.
"The transactions during the afternoon are mainly done by brokerages on behalf of clients," he said.
Investors should also mind the break time before the market resumed at 1pm, said investor Nguyen Tuan Anh. "That's the time for investors to observe carefully the release of information that can potentially impact their decisions." — VNS