Big wobble at the starting bell

The VN-Index fell 2.48 points or 0.58 per cent to 421.99 points on Ho Chi Minh Stock Exchange (HoSE), after strongly fluctuating during the session.

Meanwhile, the HNX-Index lost 0.73 points or 1.01 per cent to 71.46 points on the Hanoi Stock Exchange (HNX).

Liquidity significantly eased back on both bourses. Total trading volume reached 94 million shares worth VND1.3 trillion ($62.8 million) today. Among them, 50.6 million shares worth VND783.5 billion ($37.9 million) changed hands on the HoSE.

Selling pressures increased with uncertain sentiment about the economy’s recovery. The State Bank governor last week said that 2012’s credit growth might be only in 8-10 per cent and the initial target of 15-17 per cent is almost a mission impossible.

He acknowledged that the request to lower the lending rate to 15 per cent is not compulsory and hinted that banks would not try to help enterprises at all costs.

“We believe that it should be a part of “natural selection” for the enterprises as not all of them are worth saving,” said Saigon Securities Inc.

Just a few large-cap stocks retained their gains, among them Sacombank (STB) and PetroVietnam Fertilisers (DPM).

Meanwhile, banking stocks Vietcombank (VCB), Vietinbank (CTG), Asia Commercial Bank (ACB) ended flat. Eximbank (EIB) and Military Bank (MBB) slightly fell.

Real estate stocks support a negative session with most stocks dropping. Large-cap stocks Vincom Group (VIC), Song Da Urban & Industrial Zone Investment and Development (SJS) and Kinh Bac City Development Share Holding Corp. (KBC) strongly fell.

Speculative stocks like Hoang Quan Consulting-Trading-Service Real Estate Corp. (HQC), Ninh Van Bay Real Estate (NVT), Transport Engineering Construction & Business Investment JSC 584 (NTB), Dat Xanh Real Estate Service & Constructions Corp. (DXG) lost 2-3 per cent each.

Securities company shares largely ended lower, with Agribank Securities (AGR), Saigon-Hanoi Securities (SHS), BIDV Securities (BSI) hitting the floor. VNDirect Securities (VND) slightly shed.

Overall, 169 stocks were off and 70 were up on HoSE. Some 174 stocks lost on HNX compared with 74 advancing.