Banking woes rattle investors

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index sharply lost 13.53 points or 3.38 per cent to end at 386.19 points, while Hanoi Stock Exchange’s (HNX) HNX-Index slipped 2.8 points or 4.44 per cent to 60.31 points.

Bottom fishing activities, which temporarily rallied in previous session, also eased back. The matching value of the two bourses sunk to less than VND1 trillion ($48.3 million).

Some 42.3 million shares worth VND645.2 billion ($31.2 million) changed hands on HoSE, and 35 million shares worth VND320.4 billion ($15.5 million) were traded on HNX.

Rumours continued around inspections in banking system, making investors feel unsafe.

Although Masan Group (MSN) chairman Nguyen Dang Quang publicly denied the rumour that he had just been arrested, the brokerage house Ho Chi Minh City Securities still cut margin lending for Masan Group (MSN) stock this morning. The stock ended flat at VND92,000.

Some 210 stocks declined on HoSE, compared with 49 up. Most banking, real estate and speculative stocks in mineral or rubber sectors hit the floor.

Banking stocks continued being strongly offered, particularly Asia Commercial Bank (ACB). Other banking stocks like Vietcombank (VCB), Vietinbank (CTG) saw big demand, but mostly at floor prices.

Military Bank (MBB) outperformed the bourse with 3.3 million shares matched. Sacombank (STB) followed with 2.8 million shares matched. The stock just shed 0.5 per cent.

HNX witnessed 211 stocks reduced, compared with 36 up. Most leading stocks hit the floor. Saigon-Hanoi Bank (SHB) and some stocks in PetroVietnam-family suffered smaller falls.

Foreigners also reduced their net buying today. They net bought just VND17.2 billion ($830,900) worth of shares on HoSE today, compared with the peak of VND130 billion ($6.3 million) last week. However, they increased buying shares on HNX, making a net buying worth VND72 billion ($3.5 million) on the bourse.