Market heads south

January 05, 2012 | 17:00

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Ho Chi Minh Stock Exchange (HoSE) fell even more dramatically Thursday from an already downward trend, led by major stocks’ massive drops.

The benchmark VN-Index sunk as high as 7.9 points or 2.26 per cent to 340.94 points, its lowest level within three years.

A mass of major stocks dropped since 10:00 pm thanks to strong bailing out pressure, raising question among minor investors about a number of major investors driving off the market.

Pillar stocks Vinamilk (VNM) and Bao Viet Holdings (BVH) both sharply fell while Vincom Corp. (VIC) hit the floor. Meanwhile, Hoang Anh Gia Lai (HAG), FPT Corp. (FPT) and Hoa Phat Group (HPG) also strongly dropped on HoSE.

Following the blue-chips’ falls, mid-cap and small-cap stocks largely tumbled, dragging half the bourse sunk in red. Some 149 stocks ended off on HoSE, compared with just 60 up and 97 unchanged.

Financial shares Eximbank (EIB), Sacombank (STB), Military Bank (MBB) shed 1-2 per cent. Of the worse situation, real-estate shares Hoang Quan Consulting – Trading – Service Real Estate Corp (HQC), Investment and Trading Of Real Estate (ITC), Tu Liem Urban Development (NTL), Tan Tao Investment Industry Corp. (ITA) largely hit the floor or nearly hit the floor.

Hanoi Stock Exchange (HNX) saw the similar movement as the bourse was driven down by major stocks VNDirect Securities (VND), Kim Long Securities (KLS), PetroVietnam Construction (PVX), Vietnam Construction and Import-Export (VCG).

The benchmark HNX-Index eased back 0.54 points or 0.96 per cent to 55.89 points.

With the market continued declining and with the upcoming Tet holiday, investors increasingly kept aside the market. Total volume stood at 20.6 million shares worth VND304.4 billion ($14.7 million), with put-through volume reaching 3.4 million shares worth VND78.6 billion ($3.8 million).

HNX’s liquidity reached 20.4 million shares worth VND181.6 billion ($8.8 million).

Whereas, a number of speculators still cashed in some low-price stocks. Among them, Petrovietnam Transportation Corp. (PVT) sharply rose, among top active stocks. Japan Vietnam Medical Instrument (JVC) continued strongly active with more than 1 million shares matched today.