VN-Index trips on credit crunch

The Ho Chi Minh Stock Exchange flooded in red on March 2 after the central bank ordered local lenders to cut credit for equity and real estate sectors.

Vietnam’s benchmark VN-Index, which tracks 280 companies and five mutual funds listed on the city bourse, collapsed 1.78 percent, or 8.29 points, to close at 457.83 points.

On the index, only 19 stocks advanced, 245 tumbled, while 21 treaded water.

Trading volume nearly doubled over the previous trading session. More than 46.6 million shares changed hands at a value of VND975 trillion, up 67 percent.

Saigon Securities Inc. (SSI), the country’s largest brokerage, was the most active share in volume with 3.61 million shares changing hands.

It was followed by Refrigeration Electrical Engineering Corporation (REE) with 2.22 million shares.

Tan Tao Investment Industry Corporation (ITA) tagged along with 2.12 million shares traded.

Mekong Fisheries Joint Stock Company (AAM) plummeted 8.7 percent to close at VND21,000.

Other losers included Meca Vneco Investment & Electricity Construction Joint Stock Company (VES), Binh Thanh Import - Export Production & Trade Joint Stock Company (GIL), and Lu Gia Mechanical Electric Joint Stock Company (LGC).

Among a few gainers, VietNam Sun Copporation (VNS) rallied 4.71 percent to VND26,700.

Bao Viet Holdings (BVH) went up for two days in a row, gaining 4.67 percent to VND78,500.

Sao Vang Rubber Joint Stock Company (SRC) grew 4.62 percent to VND24,900.

The smaller bourse in the north also performed badly as the Hanoi’s HNX-Index slumped 4.19 percent, or 3.99 points, to close at 91.17 points. Trading volume on the northern trading floor reached the highest level since December last year as around 53.9 million shares worth VND765.5 billion changed hands.

Meanwhile, the UPCom-Index of unlisted shares market slipped 0.06 points to 39.45 points this morning. A total of 100,000 shares changed hands at a value of VND1.09 billion as of 11:20 am local time.

By Sao Khue

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