HoSE plummets to five month low

The benchmark VN-Index shed 2.36 points or 0.57 per cent to end at 410.73 points, breaking the resistance level of 413 points.

Liquidity strongly tumbled on investors’ gloomy mood, hitting VND331.6 billion ($16 million). Put-through transaction was weak, with liquidity low at 27.6 million shares worth VND354.9 billion ($17.1 million).

The fall was even worse on the Hanoi Stock Exchange (HNX), where the HNX-Index shed 1.13 points or 1.63 per cent to 38.08 points. Liquidity dried out to 25.1 million shares worth VND225.7 billion ($10.9 million). Among them, matching volume made up just VND184.7 billion ($8.9 million).

Such levels of liquidity equaled to those before Tet holiday, before the market recovered in early 2012.

Small-cap and mid-cap speculative stocks did not stop their sharp tumble. Cheap real-estate stocks like Sao Mai Construction Corp. (ASM), PetroVietnam-Idico Long Son Industrial Park Investment (PXL), Dat Xanh Real Estate Service & Constructions Corp. (DXG), Urban Development and Construction Corp. (UDC) largely hit the ceiling.

Mineral stocks like Nari Hamico Minerals (KSS), Bac Giang Exploitable Mineral (BGM), Binh Thuan Mineral Industry (KSA), Tay Bac Minerals Investment (KTB) sharply fell 4-5 per cent each.

Large-cap stocks suffered slighter falls. Financial stocks like Saigon Securities Inc. (SSI), Eximbank (EIB), Vietcombank (VCB), Military Bank (MBB) just slightly shed or ended flat.

In yesterday’s monthly government press conference, the Government Office stated that the resolution of bad debts would not consist of new fund injections, in order to avoid creating any further inflation.

On the HNX, PetroVietnam-family stocks suffered strong falls. PetroVietnam Construction (PVX) lost 4.4 per cent, Petro Vietnam Power Land (PVL) 6 per cent, Vinaconex-PVC Construction Investment (PVV) 5.88 per cent, PetroVietnam-Nghe An Investment & Trading (PXA) 5 per cent while other stocks largely off 3-4 per cent each.

Financial stocks in securities company sector and banking sector continued suffering modest falls of 2-4 per cent each.