Door closes on property firms

November 15, 2011 | 16:00

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Investors aggressively bailed out of real estate shares Tuesday after the state regulator asserting that the government would not rescue the property sector.

A mass of major real estate stocks hit the floor, including Vincom Corp. (VIC), Song Da Urban & Industrial Zone Investment and Development (SJS), Development Investment Construction (DIG), Ho Chi Minh City Infrastructure Investment (CII) and Khang Dien House Trading and Investment (KDH).

VIC hit the floor for the second session after its merger announcement with Vinpearl Tourism and Trading (VPL).

Also, Quoc Cuong Gia Lai (QCG), Kinhbac City Development Share Holding Corp. (KBC) and Hoang Anh Gia Lai (HAG) sharply slipped.

After unofficial information among financial sector last week about the government’s aid for real-estate sector during last week, (explain this ??) deputy minister of Construction Nguyen Tran Nam denied the rumour in local media today. Real estate shares tumbled in the wake of the public denial, strongly dragging down the market.

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index shed 3.87 points or 0.99 per cent to 387.87 points, although it had slightly gained at the session’s start. Decliners still strongly outran advancers 147 to 65.

In line with the real estate sector’s fall, several blue-chips dropped as well. Vinamilk (VNM), Masan Group (MSN) and Hoa Phat Group (HPG) significantly lost while Saigon Securities Inc. (SSI) and PetroVietnam Finance (PVF) continued their downtrend.

Put-through transactions sharply rose again to 10 million shares worth VND511 billion ($24.7 million), led by major stocks MSN, HAG, SSI. HoSE’s total volume reached 37 million shares worth VND877 billion ($42.4 million).

Hanoi Stock Exchange (HNX) slightly turned head after continuously falling in previous sessions. The benchmark HNX-Index added 0.61 points or 0.98 per cent to close at 63.06 points.

The gain was helped by driving stocks VNDirect (VND), Kim Long Securities (KLS), PetroVietnam Construction (PVX) rebounded on the bourse after falling too deeply to attractive price levels.

Saigon-Hanoi Bank (SHB) and Asia Commercial Bank (ACB) both advanced. Overall, advancers and decliners ran almost even 108 to 110.