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VietNamNews

New securities lending limits push down stocks

Update: February, 03/2015 - 09:37
Investors trace market fluctuations at Kim Eng stock trading floor in HCM City. — VNA/VNS Photo Hoang Hai
HA NOI (VNS)  — Stocks sank into the red on both exchanges after Circular 36 took effect yesterday. This regulation is forecast to reduce bank lending to the securities market because it sets the lending limits for this.

Earlier, some analysts said the impact of the ruling had been reflected in market development in a previous period. However, the market downturn yesterday right after the circular took effect proved that a probable impact of this regulation is a worry for investors.

On the HCM City Stock Exchange, the benchmark VN-Index lost 0.99 per cent to close yesterday's session at 570.37 points.

The VN30 which tracks the top 30 shares by market value and liquidity also dropped 1.33 per cent to end at 598.46 points.

The market condition was negative as the decliners tripled the advancers.

Liquidity waned as market volume was down 15 per cent from Friday's level, totaling just 85 million shares, while the trading value fell 20 per cent to reach nearly VND1.5 trillion (US$70.1 million).

Only 19 stocks saw trades of more than a million shares, of which Ocean Group (OGC) was the most active with 4.8 million traded. However, the share price tumbled 6.56 per cent to finish at VND5,700 a share.

On the Ha Noi Stock Exchange, the HNX-Index also decreased 1.33 per cent to close at 84.42 points. Liquidity also declined with both market volume and value sliding 20 per cent compared with Friday's levels. A total of 41 million shares were sold worth VND478 billion ($22.3 million).

FLC Joint Venture Global Investment Co (KLF) remained the most active in the capital on trading of 6.4 million shares, but its shares dived 3.85 per cent to end at VND10,000 each.

Foreign investors concluded yesterday as net sellers in the two markets. They were responsible for a combined net sell value of more than VND186 billion ($8.7 million), the highest number since the beginning of this year. — VNS

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