Oct 12: Vietnam stocks fall on macro uncertainty

Vietnamese stocks dropped today as investors sold shares aggressively on tension of forex market, banks’ liquidity and margin trading restriction.

The benchmark VN Index lost 6.82 points, or 1.63%, to end at 410.91. Volume rose 22.4% to 35.2 million shares worth VND513.1 billion including 2.7 million shares worth VND66.12 billion changed hands in the put-through deals.

Local forex market continued to show some tension and dollar prices at the free market have risen to VND21,450, up VND170 from yesterday close meanwhile the midpoint official exchange rate stayed at high level of VND20,668 for a second day. Local banks quoted dollar prices at the ceiling VND20,875. The gap between dollar prices in the official and back markets has widened to VND575 a dollar.

The second negative factor that drove the market down today was liquidity constrain of local banks when inter-bank interest rates hit 19% yesterday.

In the market itself, the news that 97 stocks on the HNX and 56 issues on the HOSE are blocked from margin trading including blue chips SSI and hot shares KLS, VND, VCG, PVS, HQC hammered speculators and offloading these shares was inescapable today.

The market breath today was negative, among 302 shares listed firms on HOSE, losers outweighed gainers by 195-36 and 50 stocks unchanged. As many as 71 stocks fell to the floor while 7 issues hit the ceiling, 5% each side.

Among top 10 market caps, 2 unchanged, 8 lost.

For the active players, Becamex Infrastructure Development JSC. (IJC) was the most active stock with 1.9 million shares traded, closing down 4.3% to VND11,100.

Saigon Securities Inc. (SSI) was in the second place with 1.9 million shares traded, closing down 4.7% to VND18,200.

Vietnam Electricity Construction Joint Stock Corporation (VNE) ranked third with 1.4 million shares traded, closing down 4% to VND4,800.

Ocean Group JSC. (OGC) stayed in the fourth place with 1.3 million shares traded, closing down 4.2% to VND11,400.

Petrovietnam – Idico Long Son Industrial Park Investment JSC. (PXL) was in the last in the most active list with 1.1 million shares traded, closing down 3.6% to VND5,400.

On the Hanoi Stock Exchange, the HNX lost 1.45 points or 2.04% to close at 69.48. Trading volume inched up 78% to 44.6 million shares traded for VND462.1 billion of which 2.3 million shares worth VND24.1 billion were changed hands in put-through deals.

Market breadth was negative with 48 gainers, 214 losers and 33 flat issues and 98 untraded. Among top 10 market caps, 2 gained and 8 unchanged.

Kim Long Securities JSC (KLS) was the most active stock with 6.4 million shares traded, closing down 6% to VND10,800 on average.

VNDIRECT Securities Corporation (VND) was in the second place with 5 million shares traded, closing down 5.3% to VND10,700 on average.

PetroVietnam Construction Joint Stock Corporation (PVX) ranked third in the list with 2.5 million shares traded, closing down 3.6% to VND11,600 on average.

Source Scarlet D./ Analyst / StoxPlus

Tags: vietnam stock, Vietnam stock market, VNindex