Blue chips losses drive down both stock indices (25/10/12)

Stocks plunged further this morning on both stock exchanges, driven by slumps of blue chips.

The VN-Index on the HCM City Stock Exchange edged down another 1.12 per cent to close the morning's session at 391.03 points with a low value of VND473.3 billion (US$22.5 million).
Blue chips led the downturn as the VN30 tracking the top 30 shares on the bourse was down 1.34 per cent to 460.39 points.

Shares in Tan Tao Investment Industry Corp (ITA) sold heavily with nearly 4.4 million traded, depressing the shares to the floor price at VND4,100.

Kinh Bac City Development (KBC) and PetroVietnam Finance (PVF) also saw their shares drop to the floor price, while others fell steeply including dairy giant Vinamilk (VNM), Sacombank (STB), Eximbank (EIB) and insurer Bao Viet Holdings (BVH) with losses from 1-3.8 per cent.
Only steelmaker Hoa Phat Group (HPG) and food processor Masan Group (MSN) posted gains, with increases of 2.2 per cent and 0.5 per cent respectively.

On the Ha Noi Stock Exchange, the HNX-Index declined 0.85 per cent to a close on 53.79 points with a poor trading value of VND105 billion ($5 million).

Developer Sacomreal (SCR) was temporarily the most active code on the northern bourse this morning with 2.6 million shares exchanged, hitting the floor price of just VND5,600 a share.
PetroVietnam Construction (PVX) was the second most active stock with trades of 1.87 million shares. The shares sank 4.5 per cent to VND4,200 each after the company posted a heavy loss of VND546 billion ($26 million) in the first nine months of this year.

Trading will resume at 1pm.

View more random threads:

• Profit-taking depresses indices in both bourses
• Shares fall as profit-taking increases (18/1/13)
• DHP: DHP: Stock ineligible for margin trading
• Insurance firms promise to list shares this year
• Shares gain in Ha Noi while slump in HCM City
• ACB hopes to end bad debts in 2017
• Investors dump shares as stocks drop to one-year low
• PVR: HNX notice: PVR under alert
• TMC: Notice of record date for dividend payment in cash
• VCC: Notice of record date for Dividend payment in cash

Stocks plunged further yesterday on both stock exchanges, driven by losses among blue chips.
The VN-Index on the HCM City Stock Exchange gave up another 1.4 per cent to close yesterday's session at 389.92 points.

An increasing number of trades focused on bargains and cheap shares helped push up liquidity with trading value up 30 per cent over the previous session, totalling VND638 billion (US$30.4 million), on a volume of 43 million shares.

Blue chips led the downturn, however as the VN30 tracking the top 30 shares on the bourse was down 1.43 per cent to 459.93 points.

Shares in Tan Tao Investment Industry Corp (ITA) were sold heavily with more than 5 million shares traded, with ITA plunging to its floor price at VND4,100 a share.
Dairy giant Vinamilk (VNM), Kinh Bac City Development (KBC) and PetroVietnam Finance (PVF) also saw their shares drop to the floor price, while others fell 1.4-2.3 per cent, including property developer Hoang Anh Gia Lai (HAG), Eximbank (EIB) and insurer Bao Viet Holdings (BVH).

Both markets continued to decline after a slight recovery on Tuesday which was unexpected. However, according to previous trends, after a period of low liquidity, a wave of strong selling is likely to occur before the market can rebound, according to stock analysts at Viet Nam Investment Securities Co.

"In addition, the ban on short sales and tightened control on deposits on investor accounts contributed to sluggish trading during recent sessions," they said in a report.

A fine of VND275 million ($13,100) for HCM City Securities Co (HSC) following violations related to short selling and the State Securities Commission's ban on VNDirect Securities Co (VND) from providing margin contracts for 60 days further depressed investor sentiment, analysts said.

On the Ha Noi Stock Exchange, the HNX-Index also declined 0.68 per cent to close on 53.88 points with a total value of just VND152 billion ($7.2 million).
Developer Sacomreal (SCR) was the most active code on the northern bourse with 2.65 million shares exchanged, hitting the floor price of just VND5,600 a share.

PetroVietnam Construction (PVX) was the second most active stock with trades of 2.5 million shares. The shares sank 4.55 per cent to VND4,300 a share after the company posted a large loss of VND546 billion ($26 million) for the first nine months of this year.