Blue chips pull down VN Index

Workers of the Ca Mau Gas Company, a subsidiary of the PV Gas, operate a line. PV Gas was one of companies saw reduction in share value on Monday. — VNA/VNS Photo Huy Hung

Shares declined further on Monday afternoon as most large-cap stocks slipped on investor caution about a steeper downward correction.

On the HCM Stock Exchange, the VN-Index dropped 1.12 per cent to close at 768.91 points. The key index inched down 0.1 per cent in the previous session after a three-day rally.

Twenty seven of the 30 largest shares by market value and liquidity lost value and only three gained, driving the VN30 down 1.9 per cent at 745.6 points.

Sector-leading companies such as Vinamilk (VNM), Petrolimex (PLX), PV Gas (GAS), Vietcombank (VCB), Vietinbank (CTG), FPT (FPT), Hoa Phat Group (HPG), Masan Group (MSN) and VinGroup (VIC) all fell.

“The VN-30 was sold out strongly today possibly due to the restructuring of the portfolio funds in the future,” market analysts at BIDV Securities Co (BSC) wrote in a note.

Overall market breadth was negative as declining stocks outnumbered advancing ones by 194-85, with another 60 unchanged.

“Market breadth remains negative, suggesting that the pervasive cash inflows continue to diminish,” BSC’s analysts said, expecting the market to move about 765-770 points in the upcoming trading sessions as the effect of Monday’s correction eroded.

Money flowed into low-value stocks, especially those priced below VND10,000 per share, such as Tan Tao Industry and Investment (ITA), FLC (FLC), Hoang Quan Consulting-Trading-Service Real Estate Corp (HQC), Hoang Huy Investment Services (HHS) and Quang Nam Rubber Investment (VHG).

These were the most heavily traded stocks, with eight to 12 million shares traded for each company. Except HQC, the other four stocks advanced between 1.1 and 6.8 per cent each.

On the Ha Noi Stock Exchange, the HNX Index lost 1.78 per cent to settle at 98.64 points.

Liquidity increased sharply with nearly 335 million shares worth VND5.6 trillion (US$246.7 million) traded in the two exchanges, up 22.8 per cent in volume and 33.3 per cent in value compared to the previous session.

Foreign traders also offloaded local shares. They concluded as net sellers on the HCM City’s bourse after a five-day net buying streak, responsible for net value of VND98 billion. They also increased net selling value in Ha Noi’s market by nine times compared to Friday to touch VND35 billion. — VNS