FTP slump pulls market south

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The technology giant closed at VND55,000 per share, down 4.35 per cent after sharply jumped within five recent sessions.

There has been concern among investors about the company’s plan to consolidate three subsidiaries – FPT Information System (FIS), FPT Software and FPT Trading Group – with itself. To carry out the consolidation, the parent company planned to issue its own shares and swap them with the subsidiaries’.

The plan was evaluated by Au Viet Securities as “bringing FPT’s existing shareholders almost no benefit due to a dilution effect”, and might even show “the FPT’s embarrassment in its strategy” as FPT Trading and FIS had been detached since just two years ago.

PetroVietnam Fertilisers (DPM) lost 2.19 per cent, after the firm announced a low profit target for 2011 in the face of unstable supplies and declining demand.

Bao Viet Holding (BVH) and Hoang Anh Gia Lai (HAG) both shed some 1.3 per cent, followed by numerous blue-chips falling on Ho Chi Minh Stock Exchange (HoSE).

Some 163 stocks gave back while just 47 advancing, dragging  the VN-Index down 3.28 points (0.71 per cent) to 461.01 points.

Liquidity was low at 25.94 million shares worth some VND520 billion ($25.1 million) today, although it had risen against previous session.

“Investors are mainly keeping aside the market”, said Saigon-Hanoi Securities, indicating that unfavourable macroeconomics, particularly high inflation, was weighing on investors’ sentiment.

Of the advancers, the real-estate giant Vincom JSC (VIC) added 0.75 per cent. Saigon Securities Inc. (SSI) and Sacombank (STB) ended flat.

The Hanoi Stock Exchange (HNX) saw a similar downward session with HNX-Index shed 0.84 points (or 0.93 per cent) closing at 89.42 points. Trading value slightly increased 8.28 per cent to VND278.79 billion ($13.47 million).

Some 182 stocks lost overwhelming the 70 gainers on the northern bourse. Up to 127 stocks kept flat.

The dropping trend covered almost all major stocks, with PetroVietnam Northern Gas (PVG) down the most.

Securities company shares all shed from 1 to 2 per cent, while banking shares Habubank (HBB) and Asia Commercial Bank were unchanged.