Investors shot fire-sales on blue-chips on Monday on the HCM City Stock Exchange, driving the VN-Index below 520 again to close at 516.74, a drop of over 1 per cent from Friday's close. Volume of the day's trades fell slightly to 59.1 million shares, worth a combined VND2.27 trillion (US$119.5 million), a decrease of over 6 per cent compared to the previous Friday
While most of yesterday's 76 gainers were penny stocks including Thanh Cong Textile Garment Company (TCM), Hai Phong Paper Company (HAP), Nam Viet Corp. (ANV), many of the 115 decliners were blue-chips like General Forwarding and Agency Corp.(GMD), Bao Viet Holdings (BVH), Hoang Anh Gia Lai Company (HAG) and Masan Group Corp. (MSN).
Notably, about 400,000 shares in Sai Gon Securities Inc (SSI) were sold in the last minutes of yesterday's trades, driving down the share price by 1.16 per cent to VND42,700 ($2.25) despite the company's outstanding performance in the first quarter.
On the Ha Noi Stock Exchange, the HNX-Index, meanwhile, advanced by 0.25 per cent yesterday to close at 173.04. Trading volume rose by 15.4 per cent to 56.23 million shares while the value of the day's trades increased by 13.4 per cent to nearly VND1.95 trillion ($102.6 million).
Gainers outnumbered losers by 147-107. Most of the gainers on the northern bourse were also penny stocks such as Quang Ninh Construction and Cement Company (QNC), Construction and Mechanical Company No.1 (CMC) and Marine Supply and Engineering Service Company (MAC).
Losers
While many blue chips were losers yesterday including Asia Commercial Bank (ACB), Vinaconex (VCG) and Bao Viet Securities Comapny (BVS), shares under the PetroVietnam umbrella such as PetroVietnam Insurance Company (PVI), PetroVietnam Drilling Mud Company (PVC), PetroVietnam Investment Consultancy and Engineering Company (PVE), PetroVietnam Power Land (PVL) hit their ceiling prices.
The Ha Noi bourse yesterday welcomed the first listing of 26 million shares of APEC Securities Company (APS). APS fell off over 9 per cent from its opening price to close at VND14,800 ($0.78) on the first day of trading, on a volume of over 1 million shares traded.
"Development of the stock market in the coming days will depend on credit moves and inflation in April," said Bao Viet Securities Co's analyst Tran Hai Yen.
Commercial banks have just lifted deposit rates while lending rates were still popular at 15-17 per cent, raising doubts about when the lending rate would actually decrease, Yen said.
Meanwhile, April's inflation rate could go higher than expected, due to price hikes in steel and cement, Yen added.
VNDirect Securities Co's analysts agree that investors have become more cautious and tend to realise cash profits after 2-3 rising trading sessions, making stable market growth difficult to attain.
Analysts at HCM City Securities Company said investors favour penny stocks thanks to their current good profit rates while there was no special supporting information from leading shares.
Foreign investors concluded yesterday as net buyers on the HCM City bourse, responsible for a net purchase of 282,510 shares worth nearly VND42 billion ($2.2 million). They were net sellers on the Ha Noi bourse, for a net sale of 793,200 shares worth VND24.4 billion ($1.3 million).