Vietnam stock market loses $3.85 bln in 3 days
Vietnam stock market loses $3.85 bln in 3 days
The Vietnamese benchmark indices, VN-Index of Ho Chi Minh Stock Exchange (HoSE), and HNX-Index of Hanoi Stock Exchange (HNX) dropped 10 percent and 13.4 percent in the last three business days.
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Market capitalization of both floors was reduced by around VND80.2 trillion ($3.85 billion).
The Vietnamese stock market on Thursday witnessed the 3rd consecutive negative trading session following the arrest of banking mogul Nguyen Duc Kien on Monday evening.
By the end of Thursday trading session, VN-Index and HNX-Index fell to 392.8 points and 61.2 points, a 10.2 percent and 13.4 percent loss compared to Monday.
With the decline of key stocks, HoSE market capitalization dropped by VND67.5 trillion ($3.23 billion), from VND672.3 trillion to VND604.8 trillion.
The VND672.3 trillion is HoSE market capitalization in the opening session of Tuesday (August 21, 2012) which included over 70 million newly-listed MSN shares lifting the southern bourse’s market cap by VND17 trillion compared to the end of Monday session.
Meanwhile, HNX market capitalization dropped by VND12.6 trillion to VND82.5 trillion.
The shares of local banks, securities and real estate firms also saw the largest oversold volumes on the market.
The market capitalization of 3 commercial banks, namely ACB of Asia Commercial Joint Stock Bank, EIB of the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank), and STB of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) lost more than VND11 trillion ($527.3 million).
The crash came after the unexpected arrest of Nguyen Duc Kien on August 20. Kien is a founding shareholder of several major banks including ACB.
The State Bank of Vietnam (SBV) Governor Nguyen Van Binh has reassured the public, saying that Kien was arrested due to his own faults, and SBV was ready to support liquidity.
Foreign investors interested
Foreign investors, on the other hand, remained net buyers during the same period with VND16 billion and VND264 billion in net-buying volumes on HNX and HoSE, said Nguyen Doan Hung, deputy chairman of the State Securities Commission of Vietnam (SSC).
Their trading volumes on the southern bourse even surged 94 percent week on week, indicating that foreign investors are still very interested in the market, Hung said.
“They [foreign investors] proved to be calmer …and considered these days as an opportunity to buy at low prices,” Hung said.
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