Despite the release of positive economic data, the VN-Index continued its downward trend on Tuesday, losing another 0.99 per cent to end the day at 506.53.
Over 64 percent of codes on the HCM City Stock Exchange declined, with Vietinbank (CTG), Vietcombank (VCB) and property developer Vincom Company (VIC) among the few high-profile advancers. Other gainers were mostly penny stocks.
Overall trading increased slightly, however, to 44.8 million shares, worth a combined VND1.8 trillion (US$94.2 million). Telecommunications cable producer Viet-Han (VHG) led the southern market, with 2.6 million shares changing hands.
Real estate developer Long Hau (LHG) listed 20 million shares on the HCM City market yesterday. LHG shares hit their ceiling price of VND48,000 on their first day of trading, with a volume of just 1,000 shares.
On the Ha Noi Stock Exchange, the HNX-Index also closed off 0.85 per cent to 166.97. The volume of the day's trades reached 29.8 million shares, worth VND939.3 billion ($49.2 million).
Losers outnumbered gainers by 154-82 while Kim Long Securities Company (KLS) continued to be the most heavily-traded share with nearly 3.6 million traded.
The northern bourse yesterday also welcomed a new listing of 1.5 million shares of Song Da Electrical Engineering Company (SDE). SDE closed off 6 per cent up from its opening price to VND30,000 ($1.57) on a volume of 74,300 shares.
Since most securities analysts this week had predicted that trade would be heavily affected by economic data, the market decline in the face of positive data came as a surprise, said a HCM City Securities Company analyst who requested that his name be withheld.
Along with HCM City and Ha Noi inflation data, the national consumer price index was expected to climb in March by only around 0.6-0.7 per cent. The State Bank of Viet Nam also estimated a national growth rate in the first quarter of 5.7-5.9 per cent, data that should have boosted the market.
"The VN-Index sharply decreasing towards closing bell yesterday sent a negative signal to investors," said the HCM City Securities analyst. With negligible participation by foreign investors, he said, market trends remained unclear.
Foreign investors returned to being net buyers on both bourses yesterday, responsible for a net buy of 866,830 shares, worth a combined VND63 billion ($3.3 million).