|On the HCM Stock Exchange, the VN-Index edged down 0.5 per cent to close at 612.4 points. It gained 0.8 per cent in the previous session. — VNS Photo Nguyen Manh Ha
HA NOI (VNS)— Vietnamese shares declined yesterday as investors eyed an increase in trading on margin in some securities firms.
On the HCM Stock Exchange, the VN-Index edged down 0.5 per cent to close at 612.4 points. It gained 0.8 per cent in the previous session.
Meanwhile, the HNX-Index in the Ha Noi's market decreased over 0.4 per cent to finish at 81.5 points after inching up 0.2 per cent on Thursday.
According to some reports in the local media, loans to investors to trade on margin in four big securities companies - including Saigon Securities Inc, HCM Securities Corp, VNDirect Securities Co and Sai Gon-Ha Noi Securities Co - have reached over VND2 trillion (US$89.3 million) each.
"High margin levels, coupled with an unstable market outlook, made investors more cautious in trading," said Le Tien Dong, an analyst of Artex Securities Co.
Many large-cap stocks slumped yesterday, including insurer Bao Viet Holdings (BVH), Vietinbank (CTG), real estate giant VinGroup (VIC), PV Gas (GAS), software producer FPT Corp (FPT) and confectionery Kinh Do Corp (KDC).
In positive news, the Ministry of Finance yesterday issued the list of products subject to the tariff reduction schedule when the Trans Pacific Partnership is officially signed and takes effect. About 78 per cent to 95 per cent of import tariffs imposed on Vietnamese goods would be removed right after the agreement takes full effect or after 3 to 5 years, including key export items like textiles, footwear, electronics, agricultural goods and rubber.
Textile shares reacted positively to the information.
Garmex Saigon Co (GMC) rose by the daily limit of 7 per cent while Thanh Cong Textile and Investment Co (TCM) and TNG Investment Co (TNG) increased 2.3 per cent and 1.5 per cent, respectively.
However, overall market condition was negative with over 42 per cent of total 680 trading stocks declined while only 23 per cent advanced.
Liquidity increased yesterday. The market volume climbed 18 per cent over Thursday to over 156 million shares while the value of trades soared over 27 per cent to reach VND2.8 trillion ($125 million). — VNS