Securities firm wobbles rock market

Securities companies’ shares fell sharply in today’s session, after Kim Long Securities (KLS) announced its plan to withdraw from its securities business seen as ineffective.

The big brokerage firm’s act fanned concerns among investors about securities companies’ losses as well as a looming bad year for the securities market.

Bao Viet Securities (BVS), Kim Long Securities (KLS) and VNDirect Securities (VND) hit the floor in today’s session, while Saigon Securities Inc. (SSI) dropped 4.35 per cent.

“Bad news has hurt the market recently,” said Nguyen Quang Bao, vice general director for Viet Capital Securities, adding the news “will drag KLS shares and push the market in the short-term.”

The Ho Chi Minh Stock Exchange’s (HoSE) VN-Index lost 5.49 points (1.2 per cent) to end at 452.34 points, its lowest level within recent three months.

Among the sharp drops were bluechips Bao Viet Holding (BVH), Masan Group (MSN) and Hoang Anh Gia Lai (HAG).

Finance shares ended mixed, of which Eximbank added 0.69 per cent, Sacombank (STB) advanced 0.72 per cent, while Vietinbank (CTG) losing 1.61 per cent, Vietcombank (VCB) 1.6 per cent and PetroVietnam Finance (PVF) nearly hit the floor.

Liquidity strongly dropped to VND659.82 billion ($31.88 million), down 32 per cent against previous session. At the close, 184 stocks fell, while 41 were up.

Among the gainers, VIC rose 3.4 per cent, strongly buoyed by domestic investors.

Foreigners bought VND87.93 billion ($4.2 million) worth of shares, accounting for net buying of VND29.83 billion ($1.4 million).

On the Hanoi Stock Exchange (HNX), HNX-Index gave up 1.05 points (1.15 per cent) after being strongly dragged by KLS. Liquidity also fell 35.85 per cent to VND383.92 billion ($18.54 million).