HA NOI — Call it a self-fulfilling prophecy, but as soon as Dragon Capital director Dominic Scriven said this week that it was too early to expect a sustained rally, the nation's stock market yesterday began to show instability.
|Investors monitor market movements at APEC Securities Co. Shares closed up in Ha Noi yesterday but tumbled in HMC City. — VNS Photo Doan Tung
Shares in Ha Noi extended Thursday's rally, albeit at a slower rate, but HCM City stocks lost ground in the final minutes of trading yesterday morning and then continued to slip until the end of the session afternoon session.
On the HCM City Stock Exchange, the VN-Index closed off by 0.75 per cent to 438.52 points. The VN30 Index, which tracks the exchange's 30 top stocks, declined by an even more substantial 1.2 per cent to end the day at 496.87 points.
The value of trades reached about VND1.84 trillion (US$87.6 million) on a volume of 113.6 million shares.
Major blue chips retreated, with Vietinbank (CTG), real estate developer Hoang Anh Gia Lai (HAG), steelmaker Hoa Phat (HPG), Phu My Fertilisers (DPM) and financial conglomerate Ocean Group (OCG) all bottoming out – even with some supporting information about some of these shares reaching the market.
Ha Noi bourse prepares new trade rule launch
There will be changes in trading regulations on the Ha Noi Stock Exchange effective March 26, according to a new decision issued by exchange director Tran Van Dung.
The new rule attracting the most attention from investors is a new method to calculate reference prices. Currently, the reference price is the weighted average of all transactions through order matching. Under the new rule, the base price will be the weighted average of prices established by order matching in the final 15 minutes of trading in the previous session.
If listed firms want to buy back shares or sell treasury stock, the allowed single-day price volatility will be plus-or-minus 3.5 per cent, while the margin for other regularly traded shares will remain plus-or-minus 7 per cent. Listed firms are not allowed to unilaterally cancel announced plans to buy treasury stock. The firms must disclose the reasons for the cancellation, e.g., force majeure, and report to and receive approval from the State Securities Commission at least three working days before cancelling the buys.
The new rules also apply odd-lot trading to negotiated trades. — VNS
International credit ratings agency Moody's yesterday gave Vietinbank a "stable" outlook, while Hoa Phat Group reported that it led the steel market last month, producing 60,000 tonnes and accouting for 15 per cent of the construction steel segment.
Insurer Bao Viet Holdings (BVH) and food processor Kinh Do (KDC) bucked the overall downward trend and rose to their ceiling prices, while Sacombank (STB) claimed the spot as the most active share on the southern bourse with around 11 million traded.
On the Ha Noi Stock Exchange, the HNX-Index closed up 0.8 per cent to 72.76 points. With trades totalling about VND1.1 billion ($52.4 million), however, the northern bourse saw a 25.7-per-cent decline in volume from Thursday's session.
Kim Long Securities Co (KLS) surpassed Habubank (HBB) to become the most-active share with 14.8 million exchanged. HBB and PetroVietnam Construction Co (PVX) also surged to volumes in excess of 10 million, with all three stocks reaching their ceiling prices.
Foreign investors sold heavily in Ha Noi yesterday but were net buyers in HCM City. Approximately $500 million in foreign investment has been poured into the domestic stock market so far this year. — VNS