Stocks tumble over bad news

Vietnam’s benchmark VN-Index plunged on August 12, marking its steepest loss since the end of May, after revising the previous day, due to negative movements within global markets.

Losing momentum enhanced during the trading session, prompting the shares of 253 companies and five mutual funds listed on the Ho Chi Minh Stock Exchange to give up 14.72 points, or 3.18 percent, to finish at 448.4.

Among the index members, only 8 gained, 236 went down, while 14 were flat.

Investors bought cautiously, especially after receiving information that the US stock market sharply fell. Red quickly flooded the electronic trading board. Buyers and sellers mostly met at price floor.

However, some investors tended to catch bottom, helping liquidity on the city bourse to maintain a fair level.

Around 49.7 million shares changed hands at VND1.29 trillion, an increase of 24 percent in volume, and 18 percent in value over the previous day.

Refrigeration Electrical Engineering Corporation (REE) was the most active stock in volume with 2.33 million shares changing hands. Saigon Thuong Tin Commercial Bank or Sacombank (STB) ranked second with 1.8 million shares.

The country’s largest brokerage Saigon Securities Inc. (SSI) chased after with 1.64 million shares traded.

Vietnam Sea Transport and Chartering Joint Stock Company (VST) dropped for the fourth day in a row, eroding 25.26 percent to VND14,200. The company will issue around 7 million shares to reward its current shareholders at a ratio of 100:17.5, and 12 additional shares to sell to the same beneficiary at a price of VND10,000 per share and a 10:3 ratio.

Thien Nam Trading Import Export Corporation (TNA) lost 7.72 percent to VND28,700. The company’s pre-tax profits in the first seven months of this year reached VND25 billion, up 131.64 percent year-on-year, meeting 62.53 percent of this year’s goal.

Khang Dien House Trading and Investment Joint Stock Company (KDH) contracted 7.71 percent to VND39,500. It will issue 9,960,000 additional shares to sell to its current shareholders at a price of VND25,000 per share and a ratio of 10:3.

Seafood producer Vinh Hoan Corporation (VHC) traded up 4.79 percent to VND48,100. Ha Tien Transport Joint Stock Company (HTV) climbed 4.36 percent to VND38,300. Chuong Duong Beverages Joint Stock Company (SCD) advanced for the first time in three days, gaining 4.18 percent to VND27,400.

Hanoi-based HNX-Index slumped 5.1 percent, or 7.09 points, to 132.03. Trading volume was at 37.4 million shares, worth VND885 billion. The UPCoM-Index slid 1.07 points to 48.31. Around VND4.2 billion were spent on 300,000 shares.

By Phu Huu

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