Information deficit, new rule dampen shares
The last trading week was sluggish because of a lack of supportive
information and concerns over new regulations regarding financial
institutions' capital adequacy ratio.
The last trading week was sluggish because of a lack of supportive
information and concerns over new regulations regarding financial
institutions' capital adequacy ratio.
At the Hochiminh Stock Exchange, the VN-Index ended on November 21 at 588.03 points, falling by two percent week-on-week. Blue chips lost the most value as seen through the VN30 Index, which tracks the southern bourse's top shares or blue chips. It plunged by 7.8 percent.
Meanwhile, trading value remained high at an average of 2.5 trillion VND (117.9 million USD) on an average volume of 146.7 million shares.
At the Hanoi Stock Exchange, the HNX-Index dropped by 1.76 percent to 89.14 points. Trading value and volume averaged 1 trillion VND (47.1 million USD) and 73 million shares.
Selling pressure late in the previous week continued and drove share prices down. However, speculative investors still favoured property developers FLC, Tan Tao and Kinh Bac Urban City, as well as Quang Nam Rubber and Ocean Group in HCM City. They likewise favoured property developers PetroVietnam Construction, Sacomreal and Tasco, as well as retailer KLF and financial and insurance company FIT in Hanoi.
Notably, FLC witnessed more than 50 million shares change hands on November 20, a first in the market's trading history.
On November 21, the State Bank of Vietnam (SBV) announced a circular to tighten the safety ratios, cross holding and securities lending of credit institutions. The market tumbled before the circular was issued as sources had acknowledged about the ruling in advance.
According to the circular, domestic commercial banks and branches of foreign banks shall not offer securities credit of more than five percent of their charter capital, compared with the previous regulation of 20 percent.
Investors washed out shares over fears that margin lending would significantly decline. However, according to analysts, the ruling will bring benefits in the long term.
Last week, foreign investors were net sellers, unloading a net of 347 billion VND (16.3 million USD) and witnessing an increase of about 0.5 percent in the US dollar exchange rate, although the SBV opposed the lifting of the foreign exchange rate.-VNA
At the Hochiminh Stock Exchange, the VN-Index ended on November 21 at 588.03 points, falling by two percent week-on-week. Blue chips lost the most value as seen through the VN30 Index, which tracks the southern bourse's top shares or blue chips. It plunged by 7.8 percent.
Meanwhile, trading value remained high at an average of 2.5 trillion VND (117.9 million USD) on an average volume of 146.7 million shares.
At the Hanoi Stock Exchange, the HNX-Index dropped by 1.76 percent to 89.14 points. Trading value and volume averaged 1 trillion VND (47.1 million USD) and 73 million shares.
Selling pressure late in the previous week continued and drove share prices down. However, speculative investors still favoured property developers FLC, Tan Tao and Kinh Bac Urban City, as well as Quang Nam Rubber and Ocean Group in HCM City. They likewise favoured property developers PetroVietnam Construction, Sacomreal and Tasco, as well as retailer KLF and financial and insurance company FIT in Hanoi.
Notably, FLC witnessed more than 50 million shares change hands on November 20, a first in the market's trading history.
On November 21, the State Bank of Vietnam (SBV) announced a circular to tighten the safety ratios, cross holding and securities lending of credit institutions. The market tumbled before the circular was issued as sources had acknowledged about the ruling in advance.
According to the circular, domestic commercial banks and branches of foreign banks shall not offer securities credit of more than five percent of their charter capital, compared with the previous regulation of 20 percent.
Investors washed out shares over fears that margin lending would significantly decline. However, according to analysts, the ruling will bring benefits in the long term.
Last week, foreign investors were net sellers, unloading a net of 347 billion VND (16.3 million USD) and witnessing an increase of about 0.5 percent in the US dollar exchange rate, although the SBV opposed the lifting of the foreign exchange rate.-VNA
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