Market continues to be backed into a corner

Exchange rate pressures became clearer as the US dollar climbed against the dong, pushing the central bank to increase the inter-bank exchange rate for a third time in three straight days this morning. Gold exceeded global prices, despite state commitments to stabilise the domestic gold market.

Such movements discouraged stock investors, counteracting the positive impact of the central bank’s continuing efforts to lower interest rates.

“While the remedy to lower interest rates remains cold, gold and foreign currencies are emerging as new problems,” said ACB Securities.

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index shed 3.36 points or 0.8 per cent to 417.96 points. Pillar stocks Masan Group (MSN) hit the floor to VND110,000, while Vincom Corp. (VIC) and Bao Viet Holdings (BVH) both significantly off.

Real estate stocks Vinpearl Tourism and Trading (VPL) lost 2.25 per cent to VND87,000. Khang Dien House Trading and Investment (KDH), Hoang Anh Gia Lai (HAG) and Licogi 16 (LCG) were significantly off.

Production sector stocks Binh Minh Plastics (BMP), Tay Ninh Rubber (TRC), Tan Tien Plastic Packaging (TTP) were among the top losers. Large-cap stocks Kinh Do Corp. (KDC), FPT Corp. (FPT), Hoa Phat Group (HPG) continued falling thanks to selling pressures.

Overall, up to 125 stocks ended lower on the main bourse, overwhelming 87 advancers and 89 ending flat.

Liquidity sharply reduced by more than 20 per cent to 32.4 million shares worth VND513 billion ($24.8 million), of which put-through values hit VND100 billion ($4.8 million).

Investors still demanded speculative shares. Becamex Infrastructure Development (IJC) hit the ceiling, also outperforming the market with 2.7 million units matched. Foreigners also strongly bought nearly 700,000 units of the stock.

Lao Cai Mineral Exploitation & Processing (LCM), Binh Duong Trade and Development (TDC) both hit the ceiling with hundreds of thousand units matched. Mientrung Petroleum Construction (PXM), Urban Development and Construction Corp. (UDC) were strongly bid for again.

Hoang Quan Consulting-Trading-Service Real Estate Corp (HQC) hit the floor to VND13,200, but the shares were still strongly bid for with 2.1 million shares matched and more than 600,000 outstanding bid orders at the session’s end.

The Hanoi Stock Exchange lost 0.67 points or 0.93 per cent to 71.43 points. Liquidity was little changed at 31.4 million shares worth VND321.9 billion ($15.7 million). Some 161 stocks were down, compared with 89 up and 143 unchanged.