Vietnamese stocks plummeted Thursday on a free fall that jilted both the Ho Chi Minh City and Hanoi indexes into nosedives, dimming investor hopes for a strong market recovery.
Vietnam’s main index in HCMC lost 27.89 points, or 2.51% to close at 1085.3. Hanoi’s HASTC-Index shed 4.46 points to close at 343.86.
Trading volume and turnover in HCMC were down 24.7% and 34.4% respectively to 6.4 million shares and VND721 billion (US$45 million).
The bourse scoreboard was awash with red digits, detailing the fates of 82 losers against only gainers out of 107 total stocks.
Market analysts attributed the sharp decline to massive profit taking by investors.
Many blue chips were among the losers including CII, FPT, REE, PVD, and VNM, all of which plunged by less than 4%. Of the losers two heavyweights SJS and KDC dropped to the floor price of 5%.
Aggressive interest and limited volume of small stock BMC pushed the security to hit the ceiling growth price of 5% to close at VND325,000.
STB continued to be the most trade in the market with 886,790 shares despite a sharp drop buying.
Foreign investors halved their buying volume to 1.1 million shares.
The two mutual funds PRUBF1 and VFMVF1 lost 1.44% and 2.54% respectively to close at VND13,700 and VND34,500.
It was also a gloomy day Thursday on the Hanoi market, closing the session with 1.5 million shares for VND176 billion, down 54% and 53.6% respectively.
In a related development, the State Securities Commission (SSC) said 134 enterprises are currently seeking the nod to become public companies.
Many of these firms are banks and big names like the Import-Export Bank of Vietnam (Eximbank), the Asia Joint Stock Commercial Bank (ACB) and the Hoa Phat Furniture Group, among others.
Under a regulation from the Ministry of Finance, joint stock companies are required to register to become public companies with the SSC before June 30. Strict penalties await those who fail to register in time.
The move targets to closely monitor company share issues on both the official and the over-the-counter markets.
The Securities Law specifies companies that have a chartered capital of at least VND10 billion and have listed their shares on the stock market or have at least 100 shareholders are eligible to register as public companies.
The number of applications is thought to be relatively small in comparison to the almost 200 businesses subject to the law listed on the HCMC and Ha Noi bourses.
Source: Thanh Nien
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