Market slump shocks investors

Market slump shocks investors

Hanoi - Shares slumped yesterday after last Wednesday's rally, surprising a wide range of investors.

At a recent and well-known forum for stock traders, rumours that authorities were investigating the activities of financial conglomerate Ocean Group (OGC) began to circulate. This adversely affected trading, with a whopping 22.4 million shares changing hands.

A total of 315 listed codes declined, with 31 of them hitting bottom, while a total of 112 stocks finished higher. Most of the losers were speculative and low-priced shares. In recent sessions, oil and mineral share prices decreased significantly while real estate, electric equipment and service share prices increased.

At the HCM City Stock Exchange, the VN-Index lost more than eight points, or 1.34 per cent, to end at 593.53 points. Trading value jumped by 42 per cent over Wednesday's level to reach VND2.7 trillion (US$127.3 million) on a trading volume of 151 million shares.

The VN30 Index, representing the performance of the 30 largest stocks in terms of capitalisation and liquidity, retreated by 1.1 per cent to end at 630.84 points because of the fall of 23 blue chips.

Others lost ground rapidly, including Hoa Phat Group, Kinh Do Confectionery, PetroVietnam Drilling Services, Tan Tao property developer, HCM City Securities and Gemadept logistics company.

At the Ha Noi Stock Exchange, the HNX-Index reached 87.31 points, a 1.35-per cent decline. Trading value reached VND862.2 billion ($40.6 million) on a total volume of 63.9 million shares. The HNX30 Index, comprising the top 30 blue chips, also shed 1.73 per cent to end at 174.21 points.

Foreign investors narrowed down their activities in Ha Noi, with a net purchase of shares worth VND18.2 billion ($858,400). In HCM City, they achieved net sales of VND3.3 billion ($155,600).

FPT Securities Company analysts predicted that the correction would last at least until today.

vir