Stock Market: VN-Index Drops Eight Consecutive Sessions

The stock trading demand on Monday [June 19] remained low with 1,770 purchasing orders for 1.41 million shares and fund certificates and 913 selling orders for 1.33 million shares and certificates. The VN-Index fell 4.23 points to 519.47 points. This is the first time in 2006 the VN-Index dropped in six days in a row. This is also the case for the order-matching volume. Affected by a much lower selling and purchasing demand, the order-matching volume decreased 39 per cent (stocks) and 25 per cent (fund certificates). The total trading session value was VND146 billion (US$9.13 million). Like stocks, prices of fund certificates plummeted to the record low level in the nearest 10 days at VND30,500 each (down VND500). A total of 134,350 certificates were traded.

In the Tuesday trading session, the VN-Index dived to 505.94 points, equalling to the level on March 31, 2006. Thus, according to assessments from the Vietcombank Securities Company (VCBS), investors, who chose the passive investment strategy and joined the market by the end of the first quarter of 2006, had a roughly zero value growth of their stocks. The April growth of the VN-Index by over 100 points levelled by consecutive fall in May and in the first 14 days of June.

VNM and REE were the most disappointed stocks. In recent sessions, the incomprehensible oversupply at flooring price and even lower than the flooring price affected the entire market movement. These stocks were the most wanted in the June 20 trading session with 143,000 VNM stocks and 121,000 REE stocks matching orders. The price of VNM reduced to VND80,000 each while that of REE also fell to VND80,500 each. These were the record low level of the two blue-chip stocks in the latest three months.

 

In the June 21 trading session, after more than a gloomy month, investors witnessed a busy session because the oversupply of many stock codes at the lowest level in the latest three months pushed up the demand. According to the statistics, there were 1,514 selling orders for 2.68 million stocks and fund certificates and 2,146 purchasing orders for 3.05 million stocks and certificates.

The closing session saw all stock codes (except for unchanged CAN) falling prices by VND400-3,000. The VN-Index continued falling 18.08 points, bringing up the total point loss in the eight consecutive trading sessions to 60.93 points, and bringing down the VN-Index to 487.86 points, the lowest level since March 30, 2006. The order-matching volume suddenly increased with 1.71 million stocks (up 71 per cent) and 260,000 fund certificates traded. The order-matching value reached a record of VND111.3 billion.

Stock	Price levels		Changes
	March 31, 2006	June 21, 2006	Absolute	Comparative
AGF	68,000	70,000	2,000	2.9 per cent
BBC	37,000	35,000	-2,000	-5.4 per cent
BBT	14,200	16,000	1,800	12.7 per cent
BPC	26,500	23,400	-3,100	-11.7 per cent
BT6	46,200	47,200	1,000	2.2 per cent
BTC	14,000	16,000	2,000	14.3 per cent
CAN	30,300	30,000	-300	-1.0 per cent
CII		33,500
DHA	81,000	78,000	-3,000	-3.7 per cent
DPC	18,800	17,500	-1,300	-6.9 per cent
GIL	49,000	43,200	-5,800	-11.8 per cent
GMD	73,500	68,500	-5,000	-6.8 per cent
HAP	51,500	40,400	-11,100	-21.6 per cent
HAS	57,500	54,500	-3,000	-5.2 per cent
HTV	25,900	24,000	-1,900	-7.3 per cent
KDC	82,000	76,000	-6,000	-7.3 per cent
KHA	29,700	27,500	-2,200	-7.4 per cent
LAF	26,000	22,500	-3,500	-13.5 per cent
MHC	38,100	28,100	-10,000	-26.2 per cent
NHC	32,200	36,000	3,800	11.8 per cent
NKD	92,500	75,000	-17,500	-18.9 per cent
PMS	24,300	25,400	1,100	4.5 per cent
PNC	34,500	25,900	-8,600	-24.9 per cent
REE	78,500	77,500	-1,000	-1.3 per cent
RHC		36,800
SAM	78,000	88,500	10,500	13.5 per cent
SAV	46,500	43,600	-2,900	-6.2 per cent
SFC	38,200	40,500	2,300	6.0 per cent
SGH	33,900	31,500	-2,400	-7.1 per cent
SSC	68,000	58,000	-10,000	-14.7 per cent
TMS	63,500	47,000	-16,500	-26.0 per cent
TNA	40,000	41,000	1,000	2.5 per cent
TRI	35,000	32,700	-2,300	-6.6 per cent
TS4	33,200	36,600	3,400	10.2 per cent
TYA	36,100	44,700	8,600	23.8 per cent
VNM	81,000	77,000	-4,000	-4.9 per cent
VTC	48,000	50,500	2,500	5.2 per cent
VFMVF1	24,200	28,500	4,300	17.8 per cent