Market sinks on European fears

Ho Chi Minh Stock Exchange’s (HoSE) VN-Index fell for the sixth consecutive session, down 3.55 points or 0.95 per cent today to 371.75 points. The benchmark had turned positive in the mid-session, but soon fell due to a strong selling pressure.

Asian markets tumbled today, as fears over Europe’s debt crisis raised again after the rating agency Moody’s Investors Service assessed there were still “the continued absence of decisive policy measures” for the problem.

“Increasing uncertainties from global markets might cause strong movement on local market in upcoming weeks,” said Maritime Bank Securities.

Blue-chips stocks significantly declined, among them pillar stocks Masan Group (MSN) sunk 3.67 per cent, Vinamilk (VNM) 1.64 per cent, while Bao Viet Holdings (BVH) off 1.74 per cent.

Major stocks PetroVietnam Drilling and Well Services (PVD), PetroVietnam Fertiliser and Chemical Corp. (DPM), Khang Dien House Trading and Investment (KDH) also sharply shed.

Finance stocks also declined today, although the declines were modest. Military Commercial Joint Stock Bank (MBB) slipped 0.87 per cent, Saigon Securities Inc. (SSI) 1.24 per cent while Vietcombank (VCB) and Sacombank (STB) unchanged.

Meanwhile, some major stocks including real estate stocks still rallied, including Kinhbac City Development Share Holding Corp. (KBC) gained 2.65 per cent, Urban Development and Construction Corp. (UDC) 2.5 per cent and Vincom JSC (VIC) hit the ceiling.

Put-through volume rose high to 10.5 million shares worth VND206 billion ($9.9 million), boosting total volume to 34.6 million shares worth VND534.8 billion ($25.8 million). STB saw up over 4 million shares negotiated.

Hanoi Stock Exchange (HNX) was negative throughout the session, down 0.74 points or 1.21 per cent to 60.62 points. Half the market, or 169 stocks were off, while as low as 46 stocks advanced.

Liquidity was modest at 24.8 million shares worth VND204.7 billion ($9.9 million). Notably, shares of financially troubled brokerage Orient Securities (ORS) outperformed the market with 1.8 million shares changing hands.