March 9: Vietnam stocks retreat, HNX lost 90 threshold

Vietnam’s stocks posted losses as investors sold across the board including heavy-weighed blue chips on concerns over further tightening moves, HNX broke down 90 threshold.

The benchmark VN Index gained 4.87 points or 1.02% to 570.51. Volume rose to 31.2 million shares traded for VND737.45 billion.

Though the volume increased, it could not help stock prices falling as sellers were more decisive in exiting the market as they cannot see a sustainable rally in sight amid tightening moves. Analysts hold the view that bottom has not yet been seen.

After the market close yesterday, the central bank raised key interest rates including discount rate, refinance rate and overnight inter-bank rate to 12% each from previous 11% for refinance rate and overnight inter-bank rate and 7% for discount rate. The move cleared the gap between these interest rate with OMO funding rate which has stood at 12% for weeks.

Sellers took the policy as an excuse for the sell-off today but analysts say the move is welcome because it prevents banks from trading around in the primary market and helps money flows turn into production.

Local media reported VND10 trillion outstanding loans for stock investment as of the end of 2010.

In related news, local gold prices continued to fall on the government policy of strictly monitoring dollar trading on the OTC market and heading to close bullion trading.

The market opened with a loss of 0.58 point or 0.12% with 1.88 million shares traded. The trading was still sluggish but selling pressure rose, key support of the stock market: BVH, MSN, VCB, VNM and DPM all lost the ground. Market closed off the lows but still deep on broad-based losses.

The market breadth was negative, losers beat gainers by a ratio of 202 to 45 and 39 stocks unchanged. As many as 8 stocks gained 5% cap while 30 others closed down 5% limit.

SSI was the most active stock on the bourse with1.87 million shares traded, closing down 3.17% to VND21,400.

ITC ranked second in the list with 1.4 million shares traded, closing down 4.5% to VND19,000.

STB was in the third place with 1.25 million shares traded, closing flat at VND13,900.

REE and MCG followed in the list with 0.8 million shares traded each.

Foreigners net sold VND7 billion of local stocks after buying 2,728,270 shares for VND87.53 billion and selling 1,934,420 shares for VND94.53 billion, accounting for 11.87% buying value and 12.82% selling value.

On the Hanoi Stock Exchange, the HNX fell 1.6 points or 1.77% , broking down 90 strong resistance to settle at 88.45. Volume rose to 28.36 million shares traded for VND381.52 billion.

The market recorded 54 gainers, 232 losers and 25 unchanged stocks. As many as 13 stocks closed at upper limits while 53 others closed at the lower limits, the trading band on this bourse is 7% both sides.

KLS was the most active stock on the bourse with 4.3 million shares traded, closing down 6% to VN9,400. This time, half a million share bid at VND9,300 were left unfilled.

PVX ranked second in the list with 2.8 million shares traded, closing down 5.6% to VND15,300.

VND was in the third place with 1.98 million shares traded, closing down 5.6% to VND13,400.

Foreigners turned to net buy VND13.87 billion on this bourse, mostly contributed by net buying in over a million KLS shares. – Stoxplus.com

Tags: vietnam stock, Vietnam stock market, Vietnam stock news