VN-Index down as investors rue loss of leverage

The VN-Index fell for the second straight day December 3 as sentiments remained low following news that the Government has called halt to the bank-loan subsidy program.

The index, which tracks 187 companies and four open-ended funds on the Ho Chi Minh City Stock Exchange, lost 0.87 percent or 4.34 points to close at 494.80. Around 42.37 million shares worth VND1.68 trillion (US$214.8 million) changed hands.

Declines outnumbered gains by 103 to 55, while 33 remained unchanged.

The fall was, however, less steep than on Wednesday when the index was the biggest loser globally with a fall of 3.1 percent after the government said it would wind up the program intended to boost consumption and reduce manufacturing costs on December 31.

“The withdrawal of leverage in the market …created some downward pressure,” Adrian Cundy, head of research at the Ho Chi Minh City-based VinaSecurities Joint Stock Co., the brokerage unit of the VinaCapital Group, was quoted by Bloomberg as saying.

The declines were led by 620 - Chau Thoi Concrete Corp. (BT6) based in Binh Duong Province which dipped by the maximum allowed limit of 5 percent to VND57,000.

Long An Province-based construction and real estate player Hoang Long Group fell 4.93 percent to VND28,900 and the city-based Seafood Joint Stock Co. (TS4) slid 4.88 percent to VND37,000.

Saigon Commercial Bank or Sacombank (STB) which finished flat at VND25,300 was the most active stock in volume as having nearly 5.2 million shares changing hands.

Vietnam Export Import Bank or Eximbank (EIB) came next with nearly 5 million shares traded at a 2.47 percent increase or VND24,900, followed by Saigon Securities Inc. (SSI) with 1.7 million shares. The country’s largest brokerage added 1.29 percent to VND78,500.

Hanoi’s HNX-Index lost 0.64 percent, or 1.02 points, to close at 160.12. More than 18.76 million shares were traded at VND645 billion.

The UP-CoM Index gained 0.32 percent to 56.60.

On the global market, the Nasdaq rose on Wednesday as strong online holiday sales boosted shares of retailers, including, and relieved some concerns about the consumer. The Dow Jones edged lower as falling oil prices prompted investors to sell energy shares.

By Thieu Gia

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