Banking shares were the most influential group of stocks in the market last week due to the impact of the regulation, Circular 36.

Trading by foreign investors was also notable, as they shifted to become net buyers.

On the HCM Stock Exchange, the VN-Index fell over 1 per cent to 576.07 points, while the HNX-Index on the Ha Noi Stock Exchange tumbled by 1.5 per cent, reaching 85.56 points. Almost all categories of shares retreated, with the sharpest fall of 2 per cent belonging to small-cap stocks.

The average trading values and volumes were VND2.15 trillion (US$100.9 million) and 124.6 million shares in HCM City, increasing 21.5 per cent compared to the previous trading week.

The correlative figures in Ha Noi were VND731.9 billion ($34.36 million) and 61.5 million shares, rising some 29 per cent.

On Wednesday, banking shares witnessed an explosive trading session. Vietinbank (CTG), the Bank for Investment and Development (BID) and Sacombank (STB) all reached their daily increase limit. Eximbank (EIB) saw more than 100 million shares exchanged in a few trading days. However, these stocks tumbled on Friday as the effect of Circular 36, capping bank loans for securities investment, drew near.

As the circular took effect yesterday, several securities firms, which are subsidiaries of banks, sought to soothe investors by explaining that their margin trades are guaranteed. Le Duc Khanh, head of Maritime Bank Securities Co's investment strategy division, said the circular would affect almost all brokerages. His company is considering reducing margin rates. Currently, the company maintains its margin rate as previously announced to customers.

To date, a number of securities firms have raised capital for their operations, including Vietcombank Securities, KIS Viet Nam, HCM City Securities and Tan Viet Securities.

Further, oil and gas shares continued to sink in the red, due to prolonged impacts of global oil prices.

Having no support from blue chips, the indexes declined significantly during the final session of last week. However, foreign investors still concluded the week as net buyers by VND90.6 billion ($4.25 million). Mobile World (MWG) was most favoured as, in December alone, the company's revenues and profits reached VND1.69 trillion ($79.3 million) and VND64 billion ($3 million). It estimated that the entire profit for 2014 was VND674 billion ($31.6 million), soaring 161 per cent over 2013 and exceeding the target by 55 per cent. This year, Mobile World expects its revenues will hit more than $1 billion.

Generally, listed companies saw more profits last year. According to the Ha Noi Stock Exchange, 183 listed firms on the exchange recorded a total profit of VND3.45 trillion ($162 million), rising 31 per cent y-o-y. The losses of 20 companies reached VND378 billion ($17.7 million), decreasing 51.48 per cent. Three other companies have not published their financial statements.

The top performers were industrial groups, followed by minerals, oil and gas. 

VNS