Market closes week on a low

The benchmark VN-Index lost 4.47 points, or 1.17 per cent to 377.16 points, after plunging nearly 6 points during the session.

Financial sectors saw just a slight fall amid the market decline. Sacombank (STB) and Eximbank (EIB) slightly added. Vietinbank (CTG) was off 0.53 per cent, Saigon Securities Inc. (SSI), Vietcombank (VCB), PetroVietnam Finance (PVF) lost 1-2 per cent.

The news of three commercial banks, Saigon Commercial Joint Stock Bank (SCB), Vietnam Tin Nghia Commercial Joint Stock Bank (Vietnam Tin Nghia Bank) and De Nhat (First) Commercial Joint Stock Bank (Ficombank), to be merged was believed by analysts as positive sign for the local financial market, as it proves central bank’s determination to restructure the local banking sector.

Meanwhile, the news of government to restructure more than 1,300 state-owned companies by 2015 was also seen as supportive news.

Indeed, such positive news had encouraged selling power. Matching volume was improved further today to 26.8 million shares worth VND356.55 billion ($17.2 million). Total volumes reached 31.8 million shares worth VND438.85 billion ($21.2 million).

Real estate stocks continued strongly active. Ocean Group Corp. (OGC) outperformed the market with 1.5 million shares matched, followed by Hoang Anh Gia Lai (HAG) at 1.2 million shares.

HAG dropped 3.51 per cent on the S&P’s rating downgrade of the company, partly due to its struggling residential property development business. OGC hit the floor.
Hoang Quan Consulting-Trading-Service Real Estate Corp (HQC), Becamex Infrastructure Development (IJC), Tan Tao Investment Industry Corp. (ITA) and Song Da Urban & Industrial Zone Investment and Development (SJS) were also among top active stocks. Those stocks largely tumbled.

Half the main bourse lost, with 165 stocks off and 63 up.

Hanoi Stock Exchange (HNX) lost 0.86 points or 1.37 per cent, dragged by the sharp fall of major stocks.

Stocks of companies in financial trouble like Thai Hoa Viet Nam Group (THV), Orient Securities (ORS), SME Securities (SME) were strongly bailed out.

However, liquidity slightly rose to 26 million shares worth VND248.5 billion ($12.1 million).