Thang Long - Hanoi

Real estate shares drag on market
09/12/2011 | 14:00:55
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Shares managed to rise during the first few minutes of Dec. 8’s session on the HCM Stock Exchange before sinking back into the red.

The benchmark VN-Index closed at 381.63 points, a decline of 1.44 percent from the previous day. A heavy sell-off of shares lifted the value of trades by 54.8 percent over Dec. 7’s session to 629.5 billion VND (29.6 million USD). Volume was 41.7 million shares, a 34.5 percent increase. Decliners outnumbered advancers by a margin of 143 to 85.

Eximbank (EIB) and Sacombank (STB) are the only blue chips to perform well, gaining 1.6 and 0.7 percent, respectively, while other large-cap shares retreated or closed unchanged.

Real estate and construction shares, in particular, suffered from sell pressures, with Vincom (VIC), Khang Dien House Trading and Investment (KDH), Kinh Bac City Development (KBC), House Vietnam (NVN), Licogi (LCG), Quoc Quang Gia Lai (QCG) and Idico-Petroleum Construction (PXL) all bottoming out despite a Government instruction issued Dec. 8 intended to reinforce management on the real estate market.

In the instruction, the Prime Minister assigned the State Bank of Vietnam to ensure financing are available for projects capable of making a return on investment capital within the coming year, especially housing targeted to low-income earners. The bank was also ordered to co-ordinate with the Ministry of Construction to guide banks in implementing consistent credit policies with the aim of restructuring the property market.

On the Hanoi Stock Exchange on the same day, the HNX-Index responded with a slight increase of 0.13 percent, closing at 62.59 points. Trading value declined to just 238.5 billion VND (11.2 million USD), or 2.7 percent lower than Dec. 7’s level, while volume reached only 25.3 million shares.

Losers once again outnumbered gainers by 139 to 72.
Kim Long Securities Co (KLS) was the most-active share nationwide, with around 3.4 million traded before it closed down by 1.9 percent to 10,400 VND per share.

Foreign investors are net sellers on both bourses Dec. 8 by a combined net margin of 58 billion USD (2.7 million USD). /.
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