A heavy sell-off of shares pushed the VN-Index back below 500 on Dec. 2, with the Index shedding 3.06 percent of its value on the day to close at 499.14 points.

The activity drove up volume on the HCM Stock Exchange, however, with total transactions reaching 49.5 million, or 21.2 percent higher than Dec. 2’s volume. Eximbank (EIB) led trading with a volume of 9.8 million shares.
The total value of the day’s trades on the southern exchange exceeded 2 trillion VND (110 million USD).

The combination of strong volume and a plunging Index signalled strong profit-taking which had been predicted to occur when the Index ranged around 518-521, said Thang Long Securities Co deputy director Quach Manh Hao.

But the sell-off seemed to have been trigged early on Dec.2 by a rumour spreading among investors that the State Bank would impose a compulsory purchase of T-bills on commercial banks and raise their compulsory reserve rate, said Hao.

The rumour seemed reasonable in the context of the Government’s stated concern this week for controlling inflation in 2010, Hao added.

The State Bank of Vietnam denied the rumour on its website on Dec. 2 and urged investors to report the sources of such rumours to the central bank in order to help preserve the stability of the stock market.
On the Hanoi Stock Exchange on Dec. 2, the HNX-Index also dived by 5.14 percent to 160.02 points.

The value of trades on the northern market totalled 826.73 billion VND (45.9 million USD), on a volume of over 23.6 million shares./.