HA NOI — Shares on the HCM City Stock Exchange retreated 0.33 per cent to 425.56 points at the end of yesterday's session.
Losers overwhelmed gainers by 133-72.
Most blue chips tumbled. However, insurer Bao Viet Holdings (BVH), logistics firm Gemadept (GMD) and food processor Masan (MSN), in the 30 leading shares tracked by the VN30, managed to gain, adding 0.2-4.7 per cent.
The VN30 still lost 0.4 per cent, reaching 506.60 points.
Market value on the southern bourse totalled over VND712 billion (US$33.9 million), as about 37.4 million shares were traded.
The State Securities Commission has proposed to the Ministry of Finance that it expand the trading margin of the HCM City Stock Exchange's shares from 5 to 7 per cent. Meanwhile, some sources revealed that the ministry had agreed with the proposed adjustment.
The commission had earlier approved a move to shorten the payment period for traded shares to three days instead of the current four-day period.
"Thanks to these moves, market liquidity is expected to improve sharply in the coming time," Kim Eng Securities Co analysts wrote in an email statement.
However, the ministry warned that the new margin should not be implemented at the same time as other technical solutions, including shorting the payment period.
In a bull market, higher margins might help stocks rally, boosting the VN-Index further. Meanwhile, in a bear market, the opposite would happen, pushing share prices down rapidly.
As cash flows into the stock market have not improved, expanding the trading margin will possibly weaken the market before strengthening it.
Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index fetched 70.34 points, a 0.64 per cent fall.
The HNX30, representing the exchange's top shares, also shed 0.8 per cent to 134.84 points.
About 45.9 million shares changed hands, bringing the value of trades to VND372.8 billion ($17.7 million), unchanged from Thursday's level.
Profit-taking weighed on Habubank (HBB), making it the most heavily traded stock with nearly 12 million shares changing hands. More than 400 million HBB shares will be delisted from August 18 after procedures to merge the lender with Sai Gon – Ha Noi Bank (SHB) are completed.
SHB retreated 3.2 per cent yesterday, standing at VND9,200 per share. — VNS