Declining shares for a second day on the nation’s stock exchanges Aug.22 confirmed the fears of analysts that the arrest of banking tycoonNguyen Duc Kien on fraud charges will continue to have a negative impacton the market.
On the Ho Chi Minh Stock Exchange,the VN-Index lost another 1.6 percent on top of Aug. 21’s steep declineto close at 410.23 points. Decliners outnumbered advancers by almostfour-to-one.
The value of traders remained high dueto heavy sell volumes, reaching 1 trillion VND (47.6 million USD) on avolume of over 74 million shares.
Many blue chipsbottomed out. Of the exchange’s leading shares tracked by the VN30Index, 13 plunged to their floor prices – and over half of those werefinancial stocks. Only four codes in the VN30 basket managed to addvalue: Phu My Fertilisers (DPM), commercial baker Kinh Do (KDC),PetroVietnam Drilling Services Co (PVD), and Vinamilk (VNM). The VN30closed down by 2 percent to 486.32 points.
Despiteall the red, Aug. 23’s declines were less dramatic than the previoussession’s suggesting that the worst of the impact was over, said HCMCity Securities Co’s head of analysis, Fiachra Mac Cana, who expectedbuyers to return on Aug. 23.
“From a medium-termperspective, (the arrest) looks like the beginning of a clean-up and aclear message that any activity which ignores the law will not betolerated,” Mac Cana wrote in a note.
On the HanoiStock Exchange, the HNX-Index plummeted by another 3.4 percent toconclude the Aug. 22’s session at 64.65 points, with nearly half of allcodes retreating. The overall value of traders totalled 535 billion VND(25.4 million USD) on a volume of 61 million shares.
Asia Commercial Bank (ACB), of which Kien was a co-founder, continued to hit fall to its floor price amid heavy selling.
The HNX30, representing the capital city’s top shares, fell 4.15 percent to 121.73 points.
VNDirect Securities Co (VND) was the most-active share, with 7 million traded.
Nervous investors began to shift capital to gold, pushing the preciousmetal yesterday to its highest level since April. Prices posted by SaiGon Jewelry Co. and Bao Tin Minh Chau Jewelry Co. rose by 600,000 –700,000 VND (28 – 33 USD) per tael to around 42.2 – 43.7 million VND(about 2,000 USD). One tael equals 1.2 ounces.
While investors have yet to regain confidence in the market, risingglobal oil prices also stirred fears of a fourth hike in domestic petrolprices in as many months. Petrol distributors were already complainingof losses of around 1,000 VND per litre.
“If world prices keep on going up but we halt any increases, petrolbusinesses be in even more of a bind,” said Petrolimex Group deputydirector Tran Ngoc Nam.-VNA
On the Ho Chi Minh Stock Exchange,the VN-Index lost another 1.6 percent on top of Aug. 21’s steep declineto close at 410.23 points. Decliners outnumbered advancers by almostfour-to-one.
The value of traders remained high dueto heavy sell volumes, reaching 1 trillion VND (47.6 million USD) on avolume of over 74 million shares.
Many blue chipsbottomed out. Of the exchange’s leading shares tracked by the VN30Index, 13 plunged to their floor prices – and over half of those werefinancial stocks. Only four codes in the VN30 basket managed to addvalue: Phu My Fertilisers (DPM), commercial baker Kinh Do (KDC),PetroVietnam Drilling Services Co (PVD), and Vinamilk (VNM). The VN30closed down by 2 percent to 486.32 points.
Despiteall the red, Aug. 23’s declines were less dramatic than the previoussession’s suggesting that the worst of the impact was over, said HCMCity Securities Co’s head of analysis, Fiachra Mac Cana, who expectedbuyers to return on Aug. 23.
“From a medium-termperspective, (the arrest) looks like the beginning of a clean-up and aclear message that any activity which ignores the law will not betolerated,” Mac Cana wrote in a note.
On the HanoiStock Exchange, the HNX-Index plummeted by another 3.4 percent toconclude the Aug. 22’s session at 64.65 points, with nearly half of allcodes retreating. The overall value of traders totalled 535 billion VND(25.4 million USD) on a volume of 61 million shares.
Asia Commercial Bank (ACB), of which Kien was a co-founder, continued to hit fall to its floor price amid heavy selling.
The HNX30, representing the capital city’s top shares, fell 4.15 percent to 121.73 points.
VNDirect Securities Co (VND) was the most-active share, with 7 million traded.
Nervous investors began to shift capital to gold, pushing the preciousmetal yesterday to its highest level since April. Prices posted by SaiGon Jewelry Co. and Bao Tin Minh Chau Jewelry Co. rose by 600,000 –700,000 VND (28 – 33 USD) per tael to around 42.2 – 43.7 million VND(about 2,000 USD). One tael equals 1.2 ounces.
While investors have yet to regain confidence in the market, risingglobal oil prices also stirred fears of a fourth hike in domestic petrolprices in as many months. Petrol distributors were already complainingof losses of around 1,000 VND per litre.
“If world prices keep on going up but we halt any increases, petrolbusinesses be in even more of a bind,” said Petrolimex Group deputydirector Tran Ngoc Nam.-VNA
