HCM City's VN-Index saw falls for the second consecutive day on May 17 with 1.51 percent wiped off the market on the back of plunging property stocks.

The index closed at 464.35 points.

Blue chip property stocks were the biggest losers in the day's trading with shares in resort developer Vinpearlland (VPL) down 4.5 percent to 64,000 VND and those in property developer Vincom (VIC) dropping 4.8 percent to 118,000 VND.

Hoang Anh Gia Lai (HAG) shares finished 4.9 percent lower at 38,700 VND.

Other property stocks seeing losses included Hud3 Investment and Construction Co (HU3) which was down 5 percent, Song Da Urban&Industrial Zone Investment and Development Co (SJS) losing 4.8 percent, and the Transport Engineering Construction&Business Investment Co No584 (NTB) dropping 4.1 percent.

PetroVietnam Idico Long Son Industrial Park Investment Co (PXL) was down a more modest 3.6 percent.

VNDirect Securities' analysts blamed the falls on a stagnant real estate market and said they would have a significant impact on market development as they accounted for substantial part in the VN-Index's calculation.

Meanwhile, trading could remain sluggish if there was no positive news on the macroeconomic front, they said, adding the gloomy market conditions were far from over.

"As a result, capital disbursement should focus on high-portfolio stocks or investors should hold onto their cash," said the analysts.

Trading volume on the trading session was also poor with only 24.1 million shares changing hands, their total value being 483.2 billion VND (23 million USD).

Among the 10 largest cap stocks, dairy producer Vinamilk (VNM) managed gains of 2.7 percent.

Vietcombank (VCB) also continued its upwards move, surging 4.7 percent thanks to a 60 percent year-on-year increase in its net profit in the first quarter.

The UK Financial Times reported that Credit Suisse would be the bank's consultant when it came to selling 20 percent stakes to foreign partners.

But securities analysts said the VCB rally would end soon and its impact on the VN-Index wouldn't be as significant as that of MSN or insurer Bao Viet Holdings (BVH).

Saigon Securities Inc (SSI) was the most active share with nearly 1.1 million shares sold, and up 2 percent to 19,400 VND.

In Hanoi, the HNX-Index closed down (1.75 percent) for the sixth day to close at 79.56 points.

The total trade volume was 24.9 million shares with a value of 301.1 billion VND (14.3 million USD). Coffee exporter Thai Hoa Vietnam Group (THV) was the prime mover with 2.1 million shares changing hands./.