HA NOI (VNS)— The nation's stocks plunged heavily yesterday, much the same as in other Asian markets. Many shares lost out as the focus on China squeezing its financial system for cash could lead banks to cut back on lending.
Subsequently, domestic investors not only remained gloomy but also became extremely nervous. This was despite the Ministry of Planning and Investment releasing a summary of the economic situation in the first six months of this year which showed signs of a recovery, said FPT Securities Co analysts.
On the HCM City Stock Exchange, the VN-Index lost 3.4 per cent to end 473.02 points. Only 32 of more than 300 stocks closed in the green.
Almost all the 30 blue chips tracked by the VN30 showed losses, half of them over 3 per cent, with property developer DIC Corp (DIG), logistics firm Gemadept (GMD) and financial conglomerate Ocean Group (OGC) amongst others hitting floor prices. Only Sacombank (STB) finished yesterday's trades unchanged.
Overall the VN30 fell by 2.95 per cent to finish at 530.46 points.
The sharp drop yesterday was mainly caused by large-cap stocks, which did not only decline in price but also affected the southern exchange by accounting for 35 per cent of the bourse's trading volume.
Sell-offs and profit-taking resulted in the total value traded rising by 27 per cent over Monday to reach VND1.4 trillion (US$66.6 million) on a volume of 86.8 million shares.
On the Ha Noi Stock Exchange, the HNX-Index fell 2.44 per cent to 62 points with only 10 per cent of shares advancing.
However the trading value rose by nearly 50 per cent compared to the previous session, reaching VND444 billion ($21.1 million) on a volume of almost 57.6 million shares.
All of the top 30 shares led by capitalisation and liquidity dropped. The HNX30 lost 3.14 per cent to end at 115.32 points.
Foreign investors continued to be net sellers on both bourses by a combined amount of more than VND139 billion ($6.6 million).
"After yesterday's falls, we have seen the markets overall trend become even more negative than last week," FPT Securities Co analysts said. — VNS