Sacombank arrests drag stock market

August 03, 2017 - 01:00

Shares recorded unexpected downturn in the Wednesday’s afternoon trade following the concerns over the detainment of two ex-bankers.

Investors monitor the market at Bảo Việt Securities Company. — VNA/VNS Photo Trần Việt
Viet Nam News

HÀ NỘI – Shares recorded unexpected downturn Wednesday afternoon following concerns over the detainment of two ex-bankers.

On the HCM Stock Exchange, the VN-Index edged down 0.07 per cent to close at 786.23 points after peaking over 788 points in the morning. The southern market index expanded nearly 2 per cent in the last three sessions.

On the Hà Nội Stock Exchange, the HNX-Index dipped 0.35 per cent to end at 100.97 points. The northern market index gained 4.5 per cent in a six-trade rally.

Bank shares slipped due to rising investor caution, following the news Trầm Bê, Sacombank’s former chairman, and Phan Huy Khang, the bank’s former CEO, were arrested on Monday for allegedly economic mismanagement related to a unauthorized lending of VNĐ1.8 trillion (US$80 million).

Sacombank shares fell for a second day, dropping 3.5 per cent and settling at VNĐ12,550 a share.

Vietcombank (VCB), Military Bank (MBB) and Sài Gòn-Hà Nội Bank (SHB) slipped between 0.8-1.2 per cent.

BIDV (BID), Vietinbank (CTG) and Eximbank (EIB) bucked the trend; EIB rose by a daily maximum limit of 7 per cent.

According to some securities companies, investors should not be too pessimistic about the information, as difficulties at this bank were revealed a long time ago.

On the bright side, many large-cap stocks maintained growth and supported the market.

PetroVietnam Drilling and Wells Service (PVD) increased by over 2 per cent, while other shares in the list of the 30 largest stocks by market value and liquidity such as Vinamilk (VNM), Petrolimex (PXL), Sabeco (SAB), FPT Corp (FPT) and Masan Group (MSN) ticked up by less than 1 per cent.

“Selling pressure increased substantially when the VN-Index reached the old peak at 783.81 points, which pushed many large-cap stocks down. The market growth was mainly sustained by some heavyweight shares such as Vinamilk, Sabeco and PVD,” analysts at Sài Gòn-Hà Nội Securities Co wrote in a note.

They predicted the profit-taking pressure would continue challenging the uptrend of the VN-Index when it is moving towards the 790-point landmark.

Liquidity remained modest, with 298 million shares worth total VNĐ4.75 trillion ($209.3 million) being traded in the two markets. – VNS