Markets down after arrest of top banker
Markets down after arrest of top banker
Shares fell on both local bourses on Monday morning, after a former top banker was arrested and the state’s capital in dairy firm Vinamilk did not attract investors.
The benchmark VN Index on the HCM Stock Exchange lost 0.2 per cent to close at 661.48 points, ending a three-day rally, while the HNX Index on the Ha Noi Stock Exchange dropped 0.4 per cent to end at 79.27 points.
Banks were among the worst-hit as investor confidence took a beating after the former CEO and four executives of Dong A Bank were arrested for breaking lending rules. Seven of the nine listed banks closed in negative territory, including large-cap stocks such as Vietcombank (VCB), Bank for Investment and Development of Viet Nam (BID) and Asia Commercial Bank (ACB).
The banking sector also pulled down other leading industries such as real estate and insurance. Insurer Bao Viet Holdings (BVH) and property firm VinGroup JSC (VIC) slid 1.7 per cent and 0.8 per cent, respectively.
Dairy firm Vinamilk (VNM) slid 1.5 per cent as investors were uninterested in buying its shares at the auction being held on Monday.
On the positive side, energy stocks got a boost following the rise of oil prices after the non-OPEC producers also agreed to cut oil production for the first time since 2001. PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Technical Services Corp (PVS) rose 2.1 per cent, 1.8 per cent and 2.4 per cent, respectively.
The country’s largest brewer Sabeco (SAB) continued to soar and rose 7 per cent.
Around 76.4 million shares worth VND1.37 trillion (US$60.85 million) were traded on Monday morning.
