New securities lending limits push down stocks

Stocks sank into the red on both exchanges after Circular 36 took effect on February 2.

This regulation is forecast to reduce bank lending to the securities market because it sets the lending limits for this.

Earlier, some analysts said the impact of the ruling had been reflected in market development in a previous period. However, the market downturn yesterday right after the circular took effect proved that a probable impact of this regulation is a worry for investors.

On the Hochiminh Stock Exchange, the benchmark VN-Index lost 0.99 percent to close the session at 570.37 points.

The VN30 which tracks the top 30 shares by market value and liquidity also dropped 1.33 percent to end at 598.46 points.

The market condition was negative as the decliners tripled the advancers.

Liquidity waned as market volume was down 15 percent from the January 31 level, totalling just 85 million shares, while the trading value fell 20 per cent to reach nearly 1.5 trillion VND (70.1 million USD).

Only 19 stocks saw trades of more than a million shares, of which Ocean Group (OGC) was the most active with 4.8 million traded. However, the share price tumbled 6.56 percent to finish at 5,700 VND a share.

On the Hanoi Stock Exchange, the HNX-Index also decreased 1.33 percent to close at 84.42 points. Liquidity also declined with both market volume and value sliding 20 percent compared with the January 31 levels. A total of 41 million shares were sold worth 478 billion VND (22.3 million USD).

FLC Joint Venture Global Investment Co (KLF) remained the most active in the capital on trading of 6.4 million shares, but its shares dived 3.85 percent to end at 10,000 VND each.

Foreign investors concluded the day as net sellers in the two markets. They were responsible for a combined net sell value of more than 186 billion VND (8.7 million USD), the highest number since the beginning of this year.-VNA

Source: Vietnamplus

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