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| Customers buy mooncakes at a Kinh Do bakery in Ha Noi. Shares of Kinh Do Corp hit the daily limit rise of 7 per cent for the second day yesterday. — VNS Photo Doan Tung |
HA NOI (Biz Hub) — Shares failed to sustain the morning rises on HCM City's market yesterday as blue chips lost ground on strong foreign selling.
On the HCM Stock Exchange, the VN-Index was down 0.2 per cent to close the session at 658.1 points.
Nine of the top 10 biggest listed stocks declined, including real estate giant VinGroup (VIC), Vietcombank (VCB), PetroVietnam Drilling and Wells Service (PVD) and equity private firm Masan Group (MSN). These stocks were heavily sold out by foreign investors yesterday.
The foreign sectors extended their net selling to three sessions in a row in HCM City yesterday, unloading shares worth a combined VND207.6 billion (US$9.3 million). They sold shares worth a total value of over VND488 billion in the last three sessions.
Shares of VinGroup were offloaded the most with 1.3 million shares worth VND62.6 billion changing hands. The share price slipped 2.2 per cent to VND47,900 a share.
Dairy firm Vinamilk (VNM) followed with a net sell value of over VND60 billion. Its share price managed to close unchanged thanks to strong demand by domestic traders.
Other shares like VCB, MSN and PVD were among the top shares being sold out by foreign investors with each seeing net sell value of between VND10 billion and VND28 billion. Their prices decreased 0.7-2.4 per cent.
"The foreign net selling, if continued, will put pressure on the market rally," stock analyst at Bao Viet Securities Co Tran Duc Anh wrote in a note.
The VN-Index rose over 5.1 per cent in the last six days and analysts have warned about a possible downward correction, particularly amongst oil and gas stocks which have climbed strongly after several consecutive sessions of increasing value.
PVD and PetroVietnam Technical Services (PVS) dropped by 2.4 per cent each, while others such as PV Gas (GAS), PetroVietnam Drilling Mud (PVC) and PV Gas (GAS) were down by less than 1 per cent.
"Downward risk is still high at the current time," analysts at Sai Gon-Ha Noi Securities Co wrote in a report, suggesting investors put money in the shares that promise business growth in the latter half of this year.
On the other end of spectrum, confectionery Kinh Do Corp (KDC) hit the daily limit rise of 7 per cent yesterday, its second day of touching the ceiling price, as investors speculated on information that the company could sell another 20 per cent of confectionery producer Kinh Do Binh Duong JSC to Mondelez which is expected to implement this quarter.
If the deal was completed, Kinh Do Corp could collect almost VND1.8 trillion in cash.
On the smaller bourse in Ha Noi, the HNX-Index was up 0.3 per cent to close at 83.5 points.
Liquidity improved with a total of 202 million shares worth a combined VND3.9 trillion being traded in the two markets, up 30.3 per cent in volume and 44.4 per cent in value against the previous session. — VNS