Southern market plunges south

The VN-Index of the  HoSE reached a two-year record low, after tumbling 15 points, or 3.48 per cent, to 417.82 points. The benchmark had hit the six-month low in last Friday’s session.

Up to 111 stocks hit the floor on the southern bourse. Some 206 declined compared with 34 gained and 48 unchanged.

“The market still moves in a context of no supportive news,” said Hanoi Securities “It is hard to forecast any rising trend as macroeconomics show no bright signs.”

The pressure of selling-out shares in investors’ margin accounts stretched across the market as shares value largely fell below maintenance requirement. “The bailing-out has just started. With current tumbling share prices, brokerages can hardly collect back their loans even when they sell all clients’ shares,” said a Hanoi-based investor.

All the 10 largest-cap stocks declined, led by Bao Viet Holding (BVH) and Vinamilk (VNM). Hoang Anh Gia Lai (HAG) lost the entire limit also.

Finance stocks Saigon Securities Inc. (SSI), PetroVietnam Finance (PVF) and Vietinbank  (CTG) all hit the floor.

On Hanoi Stock Exchange (HNX), the HNX-Index lost 2.48 points or 3.22 per cent to 74.5 points, after 262 stocks declining and 76 hit the floor. Just 37 stocks advanced.

Almost all major stocks hit the floor or nearly hit the floor. Just Habubank (HBB) and Asia Commercial Bank (ACB) shed slightly.

Meanwhile, several small-cap and mid-cap stocks still strongly jumped thanks to a few bid orders.

Liquidity significantly rose, however, to 31.75 million shares worth VND628.5 billion ($30.4 million). Trading volume of SSI doubled to more than two million shares, followed by Eximbank (EIB) and Sacombank (STB) with more than 1.5 million shares traded each.

Volumes of VnDirect Securities (VND) and PetroVietnam Construction (PVX) soared to approximately three million units each on Hanoi bourse. Kim Long Securities (KLS)  strongly changed hands as well.

Foreigners also increased their buying volumes to 3.18 million shares, focused on SSI, HAG, BVH and DPM on southern bourse and on PVS, THV and VND on the northern bourse.