Markets retreat on continuing fears

Ho Chi Minh Stock Exchange (HoSE)’s VN-Index lost 2.99 points or 0.77 per cent to close at 387.21 points. Total volumes fell back to 30.9 million shares, worth VND406.7 billion ($19.6 million).

The news that three local commercial banks will be merged with the state-owned bank BIDV is raising contrary ideas among investors about situation of local banking sector. Meanwhile, within the securities business industry, the news of SME Securities becoming insolvency again is weighing on investors’ sentiments.

Such movements quickly ended the market’s rising trend in early this week, despite the government’s increasingly aggressive determination to lower interest rates and to restructure the local banking sector.

“Given both investors’ confidence and positive news are not strong enough, there is little possibility for the market to stably recover,” said Vietcombank Securities.

Half the market turned back to end off to day on HoSE, where 133 stocks declined and 81 advanced.

Blue-chips led the losers, among them Vinpearl Tourism and Trading (VPL) slipped 2.5 per cent while Masan Group (MSN), Bao Viet Holdings (BVH) and Vincom Corp. (VIC) slightly shedding.

Banking shares also largely declined with Vietinbank (CTG) and Military Bank (MBB) strongly dropped, Vietcombank (VCB) and Eximbank (EIB) slightly off.

Still, several speculative stocks rallied. Low-price stocks Post and Telecommunications Investment and Construction (PTC), Petrovietnam Transportation Corp. (PVT) jumped.

Several real-estate stocks were strongly bought, among them Tan Tao Investment Industry Corp. (ITA) gained 1.28 per cent, Ocean Group (OGC) 1.09 per cent while Thu Duc Housing Developement (TDH) hit the ceiling. Song Da Urban & Industrial Zone Investment and Development (SJS) hit the ceiling for the fourth straight session.

Mineral stocks Bac Giang Exploitable Mineral (BGM), Hamico Group Mineral (KSH) and electricity stocks Vinh Son – Song Hinh Hydropower (VSH), Pha Lai Thermal Power (PPC) also saw a positive session.

Hanoi Stock Exchange (HNX) modestly shed 0.27 points or 0.43 per cent, ending at 62.51 points. The bourse saw as high as 174 stocks off with 61 hitting the floor, while just 59 stocks rising.

Buying power significantly weakened, pushing liquidity down to 26.2 million shares worth VND245.2 billion ($11.8 million).