Stocks slump to one-year low

Shares continued their downward spiral again on the two national stock exchanges on August 23, reversing the unexpected rebound on previous trading day despite news that the State Bank of Vietnam may back off from imposing stricter capital adequacy requirements on the nation's commercial banks.
Shares continued their downward spiral again on the two national stock exchanges on August 23, reversing the unexpected rebound on previous trading day despite news that the State Bank of Vietnam may back off from imposing stricter capital adequacy requirements on the nation's commercial banks.

On the HCM Stock Exchange, the VN-Index opened the week down 1.52 percent to 447.92, its lowest point since the beginning of the year.

Trading volume and value also hit rock-bottom for the year. Only 22.8 million shares changed hands, worth a combined 611 billion VND (31.7 million USD). Both figures represented declines of 33 percent from August 20’s levels.

Meanwhile, only 34 shares advanced on the day, against 183 decliners, 28 of which dropped to their floor prices.

Heavy sales of Tan Tao Investment & Industry (ITA) lifted ITA to the spot as most-active share on the day, but with only a million traded. ITA closed down 4.55 percent to 18,900 VND (0.98 USD) per share.

On the Hanoi Stock Exchange, the HNX-Index also fell by 1.77 percent to close at 129.09 points. The volume of trades reached 19.3 million shares worth only 470 billion VND (24.3 million USD), declines of 30 percent from August 20 in both volume and value.

Losers outnumbered gainers by 236-54, with PetroVietnam Construction (PVX) the most-active share on a volume of 2.2 million.

A few shares managed to rise to their ceiling prices, including An Phat Plastic and Green Environment Co (AAA), following an announcement that Japan's Maruzen Kanri Kaihatsu Co Ltd intended to buy a 25 percent stake in the company, and Long An School Book and Equipment (LBE) as investors expected positive earnings in the third quarter from the publishing and educational supplies companies.

Nevertheless, foreign investors concluded August 23 as net sellers on the HCM City market, offloading 37 billion VND (1.9 million USD) worth of shares. They remained net buyers in Hanoi, picking up 57,800 shares worth 940 million VND (48,700 USD)./.

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