Dose of reality for markets

Ho Chi Minh Stock Exchange’s (HoSE) matching volumes reached 13.5 million shares – the lowest level since May 2009. The benchmark VN-Index lost 2.73 points or 0.63 per cent to 428.3 points.

The HNX-Index of Hanoi Stock Exchange (HNX) also shed 0.87 points or 1.17 per cent to 73.44 points.

Yesterday’s rallying sentiments ebbed away, after analysts said the central banks’ reduced open market operations (OMO) interest rates would not support the stock market and there was still big pressures to lessen the non-production credit ratio to 16 per cent.

“The central bank suddenly reducing OMO interest rate does not mean it will ease monetary policies,” said Vietcombank Securities.

Several investors lost patience selling out at low prices, pushing the market down.

Saigon Securities Inc. (SSI), Sacombank (STB) and Refrigeration Electrical Engineering Corp. (REE) slightly eased back, while Investment and Trading of Real Estate (ITC), PetroVietnam Transportation Corp. (PVT), Sacom Development and Investment Corp (SAM) and Ocean Group (OCG) significantly fell.

Hoang Anh Gia Lai (HAG), Song Da Urban & Industrial Zone Investment and Development (SJS) and PetroVietnam Drilling and Well Services (PVD) all strongly dropped after yesterday’s gains.

Banking shares and real-estate shares largely fell. Up to 173 stocks lost on the bourse while just 49 advanced and 70 ended flat.

Liquidity kept low at 22 million shares worth VND518 billion ($25 million), of which put-though volume making up 8.49 million shares worth VND300 billion ($14.5 million).

Only SSI had more than one million shares matched, while major stocks massively saw just some hundreds of thousands of stocks traded.

On the HNX, securities company shares dropped after massively hitting ceiling yesterday. Kim Long Securities (KLS) and VnDirect Securities (VND) both lost 1.8 per cent, while Wall Street Securities (WSS) was off 4.08 per cent.

Habubank (HBB) lost while Asia Commercial Bank (ACB) gained and Saigon-Hanoi Bank (SHB) was unchanged.

Liquidity hit 22.5 million shares worth VND258.5 billion ($12.5 million).