Stock prices retreat on fears of Circular 36

Thursday, Jan 15, 2015 12:12

The benchmark VN-Index on the HCM City Stock Exchange sliding 0.62 per cent to reach 577.01 points. — Photo vietnamnet

HA NOI (Biz Hub) — National stocks tumbled yesterday, with the benchmark VN-Index on the HCM City Stock Exchange sliding 0.62 per cent to reach 577.01 points.

Transaction values decreased slightly from Tuesday's level to VND1.98 trillion (US$92.9 million) on a volume of 108.9 million shares.

The VN30 Index, comprising the city's 30 largest stocks in terms of capitalisation and liquidity, fell 0.41 per cent to 616.84 points, despite an earlier rally.

Among the 30 blue chips, gainers overwhelmed losers by 14 to 10.

On the Ha Noi Stock Exchange, the HNX-Index declined 0.38 per cent to end at 84.86 points.

The HNX30 Index, representing the performance of the bourse's top 30 blue chips, also lost 0.45 per cent, reaching 165.01 points.

Trading value and volume hit VND621.6 billion ($29.1 million) and 52.14 million shares, respectively.

After Tuesday's heavy sales, foreign investors reversed as net buyers yesterday, with a combined net value of VND51.5 billion ($2.4 million).

According to analysts from the financial information website, the money flow tended to shift to mid-cap stocks, which kept the indices from slumping sharply.

Notable among these stocks were furniture producer Duc Long Gia Lai (DLG), up 1.9 per cent, shares of Japan–Vietnam Medical Instrument (JVC), which jumped 4.8 per cent, and shipping firm MHC's (MHC) shares, whose stock rose 2.13 per cent.

Shares of Tu Liem Urban Development (NTL) were up 2.2 per cent, Pacific Property and Infrastructure Development (PPI) appreciated by 3.4 per cent and Petroleum Equipment Assembly and Metal Structure's (PXS's) stock was up 2.8 per cent.

Among the eight banking stocks, only Vietcombank (VCB) managed to post gains. Some individuals blamed yesterday's slump on the recently issued and controversial Circular 36.

In spite of proposals from many organisations requesting a delay in the implementation of the circular, which regulates financial safety criteria for banks hence potentially reducing loans for the stock market, the State Bank of Viet Nam has been firm on the deployment of the regulation. — VNS

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