Stocks sank into the red on both exchanges after Circular 36 took effect on February 2.
This regulation is forecast to reduce bank lending to the securities market because it sets the lending limits for this.
Earlier,some analysts said the impact of the ruling had been reflected inmarket development in a previous period. However, the market downturnyesterday right after the circular took effect proved that a probableimpact of this regulation is a worry for investors.
On the Hochiminh Stock Exchange, the benchmark VN-Index lost 0.99 percent to close the session at 570.37 points.
The VN30 which tracks the top 30 shares by market value and liquidity also dropped 1.33 percent to end at 598.46 points.
The market condition was negative as the decliners tripled the advancers.
Liquiditywaned as market volume was down 15 percent from the January 31 level,totalling just 85 million shares, while the trading value fell 20 percent to reach nearly 1.5 trillion VND (70.1 million USD).
Only 19stocks saw trades of more than a million shares, of which Ocean Group(OGC) was the most active with 4.8 million traded. However, the shareprice tumbled 6.56 percent to finish at 5,700 VND a share.
On theHanoi Stock Exchange, the HNX-Index also decreased 1.33 percent toclose at 84.42 points. Liquidity also declined with both market volumeand value sliding 20 percent compared with the January 31 levels. Atotal of 41 million shares were sold worth 478 billion VND (22.3 millionUSD).
FLC Joint Venture Global Investment Co (KLF) remained themost active in the capital on trading of 6.4 million shares, but itsshares dived 3.85 percent to end at 10,000 VND each.
Foreigninvestors concluded the day as net sellers in the two markets. They wereresponsible for a combined net sell value of more than 186 billion VND(8.7 million USD), the highest number since the beginning of this year.-VNA