Economy continues to play on investors’ minds

July 24, 2012 | 18:00

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The stock market sunk throughout Tuesday’s session as investors’ nerves were shaken about the economy’s recovery.

While credit activities remained in focus, the State Bank issued a document yesterday asking commercial banks to report their credit programme and products. However, analysts saw the central bank’s act as a compulsory request.

“We believe the State Bank is still trying to push commercial banks to actively and effectively support the enterprises, but again we believe that there should be more to be done, rather than simply asking banks to consider lowering lending rate across the board,” said Saigon Securities Inc.

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index strongly dropped 6.36 points or 1.51 per cent to 415.63 points, after as many as 206 stocks ended lower. Just 48 stocks advanced on the southern bourse.

Selling pressure accelerated on speculative small-cap and mid-cap stocks, pushing those tickers sharply down. Hoang Quan Consulting-Trading-Service Real Estate Corp. (HQC), Vietnam Electricity Construction (VNE), Sao Mai Construction Corp. (ASM), PetroVietnam-Idico Long Son Industrial Park Investment (PXL) sunk 4-5 per cent each.

Mineral stocks Tay Bac Minerals Investment (KTB), Bac Giang Exploitable Mineral (BGM) along with rubber stocks Southern Rubber Industry (CSM) and Danang Rubber (DRC) slipped more than 4 per cent each.

Banking stocks modestly fell 1-2 per cent each. FPT Corp. (FPT) hit the ceiling today.

Hanoi Stock Exchange (HNX) even saw bigger fall of 2.27 per cent, or 1.62 points. The benchmark closed at 69.84 points.

Numerous leading stocks suddenly fell to floor prices or nearly fell to floor prices. VNDirect Securities (VND) and PetroVietnam Construction (PVX) both shed more than 6 per cent.

Kim Long Securities (KLS), Bao Viet Securities (BVS), Saigon-Hanoi Securities (SHS), Wall Street Securities (WSS) all lost more than 6 per cent each. Leading real estate stocks like Saigon Commercial Real Estate (SCR), Vietnam Construction and Import-Export (VCG) sharply fell.

Liquidity also decreased. Total trading volume was 44.8 million shares worth VND659.4 billion ($31.9 million) on the HoSE. The figure was of 51.4 million shares worth VND478.9 billion ($23.1 million) on the HNX.