Market continues dramatic nose-dive

Ho Chi Minh Stock Exchange (HoSE) tumbled even more strongly than yesterday, with the benchmark VN-Index off 15.23 points or 3.65 per cent to 402.59 points. Up to this date, the bourse had hit the floor for nine consecutive sessions.

The HNX-Index of Hanoi Stock Exchange (HNX) dropped 2.62 points or 3.52 per cent to 71.88 points.

The consumer price index (CPI) for May was reported this morning to have climbed 2.21 per cent for the month, with the CPI this year having jumped by more than 12 per cent. While the government targeted inflation at 12-13 per cent for this year, additional tightening measures are expected to continue negatively impacting on the local stock market.

On the southern bourse, more than three million Saigon Securities Inc. (SSI) shares were sold, doubling its volume last week. The shares hit the floor to VND16,800 with no bid orders remaining.

Almost all other blue-chips were in the same situation. Refrigeration Electrical Engineering Corporation (REE), Hoang Anh Gia Lai (HAG), PetroVietnam Finance (PVF) along with the two pillars Vincom Corp (VIC) and Vinamilk (VNM) all hit the floor, after being massively bailed-out.

Bao Viet Holdings (BVH) lost 2.7 per cent to VND72,000.

Almost the whole the market sunk into the red, with 243 stocks lost and 177 hitting the floor. Only 13 stocks gained today.

Of the gainers, Vinacafe Bien Hoa (VCF) hit the ceiling again while, Tay Bac Minerals Investment hitting the ceiling for the fourth session.

Trading volumes accelerated to more than 39 million shares, up 23 per cent, while values reached VND703 billion ($33.96 million), up 12 per cent. Put-through volumes contributed a large part of more than six million shares.

On the HNX just 23 stocks advanced. Some 269 stocks lost with 193 hit the floor. Trading volume climbed nearly 13 per cent to 35.18 million shares worth VND365.75 billion ($17.69 million).

Kim Long Securities (KLS) outperformed with nearly 3.5 million shares changing hands, followed by VnDirect Securities (VND) with some 2.5 million shares traded and PetroVietnam Construction (PVX) with some 2.2 million units.