Local shares decline on global market slump

Monday, Jul 08, 2019 12:05

Hoa Phat's steel product. Shares of the company declined more than 2 per cent on Monday morning. — Photo courtesy of Hoa Phat

Shares opened low on Monday morning and declined towards the end of the morning trading session.

On the Ho Chi Minh Stock Exchange (HOSE), the VN-Index edged down 0.61 per cent to 969.33 points. The southern market index gained nearly 2.7 per cent last week.

On the Ha Noi Stock Exchange (HNX), the HNX-Index was down 0.43 per cent to end at 103.92 points. The northern market index increased 1 per cent in the previous week.

Heavyweight stocks underperformed this morning.

Twenty-three of the 30 largest shares by market value and liquidity slumped. Ho Chi Minh Infrastructure Investment (CII) and steelmaker Hoa Phat Group (HPG) decreased by more than 2 per cent.

Some of biggest enterprises dropped by more than 1 per cent including Vietinbank (CTG), Vietcombank (VCB), Masan Group (MSN), Vinamilk (VNM), Vietjet (VJC) and Vinhomes (VHM).

According to market analysts, slumping leading indices around the world such as Japan’s Nikkeri 225, China’s Shanghai Composite Index and South Korea’s Kospi had a negative impact on local investors’ confidence.

However, the decline of the domestic market was not strong and some stocks continued to rise such as FPT Corp (FPT), Bao Viet Holdings (BVH) and Vincom Retail (VRE).

Some enterprises have begun to disclose their first-half earnings. The banking, retail, logistics, transportation, food and beverage and utilities sectors are expected to have positive business results.

A total of 101.5 million shares worth VND1.83 trillion (US$78.6 million) were traded on the two markets this morning.

The afternoon trading session starts at 1pm. – VNS

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