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VietNamNews

Credit policies depress market

Update: February, 16/2012 - 09:31
A client fulfills proceduers to get securities loans at ACB Securities in Ha Noi. — VNS Photo Truong Vi
HA NOI — Shares plunged yesterday on both of the nation's stock exchanges following news late Tuesday that the central bank would not issue more favourable credit policies for the securities market.

In a press conference on Tuesday afternoon, State Bank of Viet Nam deputy governor Nguyen Dong Tien said loans to investors in the real estate and securities markets would continue to be listed in the bank's non-productive classification and would not receive priority for lending from banks.

"Monetary policy in 2012 will continue to focus on economic stability and prioritise lending to the production sector," Tien said.

This information struck like "thunderbolt" to investors who had rushed to buy shares in recent sessions in the hopes that the central bank would ease credit for the securities market.

On the HCM City Stock Exchange yesterday, the VN-Index closed down 0.71 per cent to 397.41 points. Both the volume and value of trades improved by about 25 per cent over Tuesday's session, totalling 45.7 million shares, worth VND791.5 billion (US$37.7 million).

Decliners outnumbered advancers by 131-85.

Most blue chips lost value, pushing the VN30 Index down 0.92 per cent to close yesterday at 446.08 points. Sacombank (STB) and PetroVietnam Finance (PVF) bottomed out, while Vietinbank (CTG), insurer Bao Viet Holdings (BVH), and Phu My Fertilisers (DPM) all closed off substantially.

Eximbank (EIB) was the most active share with over 1.9 million changing hands. EIB ended the session down 0.6 per cent to VND15,400 per share.

Among shares included in the VN30, only a few posted gains, including Kinh Bac City Development (KBC) up 3.1 per cent, Ocean Group (OGC) up 1.1 per cent and Vinamilk (VNM) up 0.6 per cent.

On the Ha Noi Stock Exchange yesterday, the HNX-Index also slid 2.16 per cent to close at 60.21 points, with losers outnumbering gainers by 143-87. Value increased slightly to VND309.8 billion ($14.8 million) with nearly 36 million shares changing hands.

Ha Noi Housing Bank (HBB) was the most-active share on a volume of over 4 million, but it dropped to its floor price of VND4,500.

Nguyen Duc Hai, head of the bond department of Manulife Asset Management, said it would be difficult for the market to thrive as liquidity continued to be one of the biggest problems for banks.

Hai noted that the market had already risen by over 20 per cent in recent weeks and that many blue chips had posted gains of 30-35 per cent. "In order to continue rising at this pace," he said, "the market needs to be more motivated. So far I havn't seen those dynamics."

Foreign investors concluded yesterday as net buyers on both exchanges, picking up another VND68.5 billion ($3.3 million) worth of shares. — VNS

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