Brokerage firm fears drag market down

December 06, 2011 | 16:00

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Both stock exchanges fell despite yesterday’s strong rally amid continuing concerns about liquidity strains among brokerage firms.

The VN-Index of Ho Chi Minh Stock Exchange (HoSE) slightly shed 0.99 points or 0.25 per cent to close at 390.2 points. Selling pressure increased at the session’s end, pushing the VN-Index back to negative territory although the benchmark gained nearly 5 points during the session.

Fresh news on SME Securities’ insolvency this morning after the brokerage failed to settle some of its loans a month ago, weighed on investors’ sentiment.

“Sellers strongly dumped due to concerns about the unstable market and the fears that yesterday’s rally would soon end,” said FPT Securities.

Some pillar stocks fell dragging the market back. Bao Viet Holdings (BVH) lost 3.17 per cent, Masan Group (MSN) 0.86 per cent, while Vinamilk (VNM) ended flat after rising.

At the close, decliners outran advancers 123 to 118. Some 65 stocks were unchanged.

However, several real estate stocks continued rallying. Tan Tao Investment Industry Corp. (ITA) gained 2.63 per cent, also outperforming the market with 2.5 million shares matched. Becamex Infrastructure Development (IJC) was up 1.98 per cent with 1.9 million shares matched.

Speculative ones Urban Development and Construction Corp. (UDC), Kinhbac City Development Share Holding Corp. (KBC), Binh Duong Trade and Development (TDC) along with the blue-chip Song Da Urban & Industrial Zone Investment and Development (SJS) strongly jumped with large trading volumes.

Liquidity was good at 38 million shares worth VND505.9 billion ($24.4 million) on the southern bourse.

The Hanoi Stock Exchange (HNX) significantly lost 0.69 points or 1.09 per cent to 62.78 points, helped by securities company shares largely sinking.

Orient Securities (ORS) sharply dropped, with up to 1.6 million shares still offered at the session’s close. Major stocks in the sector modestly shed 1-2 per cent.

Some 92 stocks fell on the northern bourse, with 163 up and 138 flat. Liquidity were still good at 37 million shares worth VND340 billion ($16.4 million), still led by major stocks on the bourse.