Inflation spooks market

Hanoi posted  2.47 per cent month consumer price index (CPI) growth for September, much higher than the analysts’ previous estimation of some 1.5 per cent.

The soaring figure came as healthcare, education and energy prices continued trending up. Meanwhile, the new round of America’s quantitative easing is believed to spark a new rally of global commodity prices.

Large-cap stocks were put under heavy selling pressure at the end of today’s session. Banking and securities companies and financial stocks massively fell to floor prices.

Vietcombank (VCB) and Eximbank (EIB) hit the floor, Vietinbank (CTG) dropped 3.5 per cent, Military Bank (MBB) slipped 2.19 per cent on Ho Chi Minh Stock Exchange (HoSE). Asia Commercial Bank (ACB) hit the floor, while Saigon-Hanoi Bank (SHB) lost 4.55 per cent on Hanoi Stock Exchange (HNX).

The major brokerage Saigon Securities Inc. (SSI) hit the floor with nearly 2 million shares sold on HoSE. Ho Chi Minh City Securities (HCM) hit the floor as well. On HNX, VNDirect Securities (VND), Kim Long Securities (KLS), Bao Viet Securities (BVS) sharply dropped 5-6 per cent each.

Bao Viet Holdings (BVH) dipped on sudden increasing offering volume, after the key pillar stock supporting the market much in the morning trading. Bao Viet Holdings (BVH) closed at its floor price, also outperforming the market with more than 2 million shares matched.

Even large-cap stocks in producing sector strongly dropped. Vinamilk (VNM) led the losers as it lost VND3,000 or 2.7 per cent. PetroVietnam Low Pressure Gas Distribution (PGD) and PetroVietnam Gas (GAS) sharply fell.

HoSE saw as high as 196 stocks ending lower, while just 54 stocks advanced. Some 59 stocks ended flat. Meanwhile, HNX witnessed half the bourse or 191 stocks losing, compared with 44 up.

At the close, the benchmark VN-Index lost 7.24 points or 1.8 per cent to 394.51 points. HNX-Index sunk 2.22 points or 3.78 per cent to end at 56.48 points.

Liquidity increased slightly on HoSE, as foreigners increased their buying in this falling session. Some 41.8 million shares worth VND623.3 billion ($30.1 million) changed hands on HNX, among them VND569.2 billion ($$27.5 million) worth of shares were matched.

The figure stayed low on HNX, where 32.8 million shares worth VND240.7 billion ($11.6 million) were traded.