Vietnam Stocks Decline to Three-Week Low Amid Delisting Concerns
Vietnam’s stocks dropped, dragging the benchmark index to its lowest level since March 19, amid concern loss-making companies will delist their shares and after foreign investors sold the nation’s shares last week.
The VN Index (VNINDEX) slumped 2.1 percent to 484.16 at the 11:30 a.m. local-time break in Ho Chi Minh City. Alphanam Investment Joint-Stock Co. tumbled 6 percent as the company sought shareholder approval to delist after posting a full-year net loss. Overseas investors sold a net $8.08 million of shares in the four days through April 12, according to data compiled by Bloomberg. That’s the longest selling streak since Oct. 4.
“The fact that foreign investors switched from net buying to net selling makes domestic investors feel worried,” said Nguyen Hoai Nam, deputy head of research at Maybank Kim Eng Securities Joint-Stock Co., from Hanoi. “People are also concerned that some companies with weak earning results may have to delist.”
Masan Group Corp. (MSN) fell 3.3 percent to 117,000 dong, headed for a one-month low. The company will seek investor approval to pay no 2012 dividend, according to a statement on its website.
To contact Bloomberg News staff for this story: Diep Ngoc Pham in Hanoi at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com