Concerns over VAMC hit shares
Concerns over VAMC hit shares
Shares failed to retain Tuesday's gains during yesterday's trading session, following comments from Fitch Ratings on the operation of the Viet Nam Asset Management Corporation (VAMC).
Fitch said on Tuesday that the establishment of VAMC was "unlikely to fully resolve asset-quality problems unless accompanied by meaningful regulatory improvements".
Vietnamese banks might still face capital losses after offloading bad debts to VAMC.
Fitch explained this was because banks must make an annual provision of 20 per cent of Government-guaranteed , meaning VAMC only extended the time for troubled banks to write off losses.
VAMC officially came into operation on Tuesday, but it is questionable just how effectively the corporation will handle non-performing loans and which banks will sell their debts to them.
On the HCM City Stock Exchange, the VN-Index lost over 0.2 per cent to reach 484.43 points. Losers overwhelmed gainers by 101-78.
A volume of 32. 6 million shares changed hands, totalling a value of around VND828.6 billion (US$39 million).
The fall of the VN30, tracking the southern bourse's 30 largest stocks in capitalisation and liquidity, was more severe. It retreated 0.47 per cent to 538.97 points as tumbling shares outnumbered rallying shares by 14-10.
The State Securities Commission has approved the HCM City Stock Exchange to extend trading hours by 45 minutes to 3pm from July 22. Meanwhile, the Ha Noi Stock Exchange will apply the longer trading time a week later.
On the Ha Noi Stock Exchange yesterday, the HNX-Index shed 0.24 per cent to close the session at 62.43 points.
Trading value and volume reached VND157.5 billion ($7.4 million) and 21.87 million shares.
Only 62 listed stocks managed to rally, while 87 shares decreased and nearly 240 shares closed unchanged.
The HNX30, composed of the northern city's top shares, fell 0.4 per cent to 116.41 points.
Foreign investors returned to be net sellers by a combined margin of VND51.8 billion ($2.4 million), mostly unloading shares of Pha Lai Thermal Power (PPC), property developer Tan Tao (ITA) and construction firms Vinaconex (VCG) and PetroVietnam Construction (PVX).
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