Lack of positive news hits market

Friday, May 11, 2018 07:23

An investor sits at the trading house of Bao Viet Securities Company. — VNA/VNS Photo Pham Hau

Vietnamese shares tumbled on Thursday as a lack of supportive business information dampened investor confidence in the market’s short-term growth potential.

The benchmark VN-Index on the HCM Stock Exchange dived 2.66 per cent, or more than 28 points, to end at 1,028.87 points. It has lost total 3.1 per cent in the last three sessions.

The HNX Index on the Ha Noi Stock Exchange dropped 2.35 per cent to close at 120.95 points, totalling a three-day decline of 4.4 per cent.

More than 253.8 million shares were traded on the two local exchanges, worth VND7.45 trillion (US$331.3 million).

Trading figures were up 24 per cent in volume and 29 per cent in value compared to the previous session.

The market breadth remained negative as declining stocks dominated gainers by 303 to 145 while 112 other stocks ended flat.

Of the 20 sectors on the stock market, only the insurance-finance industry saw prices rise as it was boosted by Bao Viet Holdings (BVH), PVI Holdings (PVI) and Petrolimex Insurance Corp (PGI).

Among declining sectors were banking, securities, real estate, consumer products, rubber production and retail.

The worst-performing sectors were banking and brokerage companies, whose industry indices plunged 5.5 per cent and 3.4 per cent, respectively.

Among those firms, VNDirect Securities Co (VND) dropped 6.9 per cent – its daily trading band – after one of its affiliates HomeDirect was involved in a recent gambling case.

VNDirect is holding 15 per cent of HomeDirect, equal to VND7.5 billion. The company shares have fallen sharply in the last two sessions, losing total 16.4 per cent.

Other financial-banking stocks that also lost big on Thursday included HCM City Securities (HCM), Vietinbank (CTG), Bank for Investment and Development of Viet Nam (BID) and VPBank (VPB).

Despite the positive move of oil prices, energy stocks ended in negative territory after having risen strongly early in the day.

PetroVietnam Gas (GAS) fell 2.3 per cent, while others such as PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services (PVS) edged down 0.5 per cent and 0.6 per cent.

“The trading day continued to show bearish sentiment” as “selling pressure impacted the market after continuously changing movements” during the day, BIDV Securities Co (BSC) said in its daily report.

Bao Viet Securities Co (BVSC) said that the negative move of bank stocks had strong influence on the overall market and put selling pressure on most other groups.

Investors remained “pessimistic and panicked about the market’s risk of breaking down to the bottom”, proven by trading liquidity that was “below the average level amid negative market breadth,” BVSC said.

Selling pressure may increase if the index fell below 1,022 points, therefore, the market would continue to decline in the next one or two sessions before picking up, it said. — VNS

Comments (0)