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Roundup: Selling pressure of banking stocks pulls down Vietnam's Hanoi stock market

Xinhua, January 30, 2015 Adjust font size:

Selling pressure of banking stocks pulled down Vietnam's capital Hanoi stock market after rising in the previous week.

On Friday, HNX-Index, the benchmark of the Hanoi bourse lost 1. 3 points or 1.5 percent from the previous week's close.

The index witnessed two ups and three downs during the week, posting the lowest level of 85.56 points on Friday and the highest level of 87.23 points on Wednesday.

Last week, the HNX-Index fluctuated between 84.63 points and 86. 86 points.

The Hanoi bourse closed at 85.56 points on Friday, down 1.39 points or 1.6 percent against the previous trading session.

A total of 54.108 million shares worth 606.943 billion Vietnamese dong (28.76 million U.S. dollars) were traded at the Hanoi Stock Exchange on Friday, an increase of 7.41 percent in volume and a decrease of 0.85 percent in value against the previous trading session.

Prices of 68 stocks went up, 136 stocks fell down, while 67 stocks remained unchanged.

Compared to the last trading session in 2014, the HNX-Index on Friday posted an increase of 2.58 points, or 3.11 percent.

During the last two trading sessions of the previous week, the Hanoi bourse rebounded on rises of bank stocks, which was considered a positive signal.

However, this week, especially during the two final trading days, profit taking was seen in most of banking shares on the bourse, negatively affecting other shares on real estates, oil and gas, and securities.

The selling trend of banking stocks is possible to relate to the implementation of a document issued by the State Bank of Vietnam, the central bank, regulating prudential ratios for the operations of credit institutions and foreign bank branches, which is taking effect next week.

Circular 36 regulates the cap of bank loans for stock investment at five percent of the bank's registered capital from Feb. 1, 2015, much lower than the previous regulation of 20 percent for investment in securities in Vietnam.

Stock analysts said there are signals for further selling in the coming time, which may pull the index down to 84-85 points in the next sessions. If breaking the level, the HNX-Index is expected to witness a sharp falling in the short term. Endi