|The VN-Index on the HCM City Stock Exchange went down more than 2 per cent to close at 470.16 points.— Photo nld
HA NOI (VNS) — Shares tumbled on the Vietnamese stock market yesterday.
After successfully posting gains last week, the VN-Index on the HCM City Stock Exchange went down more than 2 per cent to close at 470.16 points.
Such a decrease is often caused by negative rumours or potentially harmful policies. However, as of late afternoon yesterday, there was no such information.
Domestic media reported that the investigation agency under the Ministry of Public Security arrested the chief of the Viet Nam Development Bank's Soc Trang branch and director of LienVietPostBank's Hau Giang branch on Saturday. But these bank branches are small and the arrests will not significantly impact the market.
Nguyen Xuan Binh from Bao Viet Securities and analysts of FPT Securities agreed that yesterday's tumble was caused by transactions by foreign investors.
"It will be the biggest risk to the short-term trend of the domestic market, even though Viet Nam's economy has started to show improvement," Binh said.
The VN30, tracking the bourse's top 30 shares, also retreated 2 per cent to close at 524.17 points.
All 30 stocks posted slumps. Becamex Infrastructure Development (IJC) plunged to the floor price, while many other blue chips declined more than 3 per cent, including insurer Bao Viet Holdings (BVH), Vietcombank (VCB), steel firm Hoa Sen Group (HSG) and logistics company Gemadept (GMD).
Trading value dropped 36.8 per cent from Friday, reaching VND802.8 billion (US$37.8 million) on a volume of 54.9 million shares.
On the Ha Noi Stock Exchange, the benchmark HNX-Index fell 1.3 per cent to 59.67 points.
The value and volume of trades decreased slightly over the previous session, totalling VND126.9 billion ($5.9 million) and 19.15 million shares.
Foreign investors remained net buyers on both bourses, but the value significantly dropped to VND11.35 billion ($535,300). — VNS