Bull-trap tramples investors

Demand for shares improved the market in the morning, but quickly turned into selling pressures during the afternoon. The VN-Index of Ho Chi Minh Stock Exchange (HoSE) closed down 0.02 points or 0.08 points to 447.94 points, after rising more than 5 points during the session.

The HNX-Index of Hanoi Stock Exchange (HNX) also lost 0.38 points or 0.49 per cent to 76.46 points.

Major stocks Vietcombank (VCB), Masan Group (MSN), Bao Viet Holdings (BVH), Vinamilk (VNM), Vietcombank (VCB), Military Bank (MBB) and Vietinbank (CTG) were sold from the beginning of afternoon trading, after the stocks jumped in the morning.

“Hot” speculative stocks massively ended off. Hoang Quan Consulting-Trading- Service Real Estate Corp. (HQC) fell 1.69 per cent, Sao Mai Construction Corp. (ASM) and Vietnam Electricity Construction (EVN) hit the floor, while Licogi 16 (LCG), Petrovietnam Transportation Corp. (PVT), International Development and Investment Corp. (IDI), Vietnam Mechanisation Electrification and Construction (MCG) were sharply off some 4 per cent each.

Some production sector stocks like Danang Rubber (DRC), Southern Rubber Industry (CSM), Sao Vang Rubber (SRC) also sharply fell after being in demand yesterday.

Decliners outran advancers 131 to 122 on the southern bourse.

Also, Hanoi stocks were dragged down by the falls of numerous major financial sector shares. VNDirect Securities (VND), Kim Long Securities (KLS), Bao Viet Securities (BVS) were off 1-2 per cent each. Decliners outran advancers 144 to 117.

Today’s market fall was in line with previous concerns of analysts, as the market had seen little supportive news to improve its lackluster trend. News about a low consumer price index and slight reduction in gasoline prices raised the market yesterday, but cooled today.

“The market recovery, if any, can hardly last throughout this week,” said VNDirect Securities.

Liquidity remained low. The HoSE saw 84.4 million shares worth VND1.53 trillion ($73.8 million) traded, but some 24 million shares worth VND609.7 billion ($29.5 million) were negotiated.

HNX saw 58.7 million shares worth VND610 billion ($29.5 million) traded, among them 7.7 million shares worth VND90.7 billion ($4.4 million) negotiated.