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| An investor observes market developments at the VNDirect Securities trading floor. Shares were mixed on the two domestic exchanges yesterday. — VNS Photo Viet Thanh |
HA NOI (Biz Hub) — Vietnamese shares were mixed on the two local exchanges, while financial firms fell on low investor confidence as the Chinese economy remained weak.
The benchmark VN Index on the HCM Stock Exchange dropped 0.5 per cent to close at 571.71 points, extending losses of 0.8 per cent to a second day.
On the contrary, the HNX Index on the Ha Noi Stock Exchange rebounded 0.3 per cent to finish at 79.37 points after Tuesday's decline.
Investor confidence was low after China on Tuesday announced the country's exports and imports saw their heaviest fall in nearly seven years, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in its daily report.
The fall in China's trade statistics raised concerns over a "hard landing" for the world's second-largest economy, which may hurt other countries, as China is a key driver of global trade and international growth.
Low investor confidence pulled down financial stocks, especially for insurance companies such as Bao Viet Holdings (BVH), BIDV Insurance Corporation (BIC) and Bao Minh Insurance Corporation (BMI). These stocks dropped 2.8 per cent, 2.4 per cent and 3.1 per cent, respectively.
Banks also suffered from low investor confidence. Vietcombank (VCB) was down 0.5 per cent, the Bank for Investment and Development of Viet Nam (BID) lost 2.3 per cent and Vietinbank (CTG) fell 1.7 per cent.
Additionally, energy stocks extended declines after crude prices fell from two-month highs on Tuesday, while investors tried to look for profits in energy stocks after these stocks made strong gains in the previous sessions.
US benchmark West Texas Intermediate (WTI) yesterday added 1.6 per cent to trade at US$37.07 a barrel. However, it plunged 3.7 per cent to close at $36.50 a barrel after US inventories expanded to an eight-decade high.
Among local energy stocks, PetroVietnam Gas Corporation (GAS) lost 1.7 per cent, PetroVietnam Mud Drilling Corporation (PVC) and PetroVietnam Coating Corporation (PVB) dropped 2.1 per cent each.
On the positive side, property developers rose after Viet Nam's central bank confirmed that the revised Circular 36, which aims to reduce the loans that commercial banks can lend in order to ensure financial safety in the banking sector, will not post negative effects on the property sector, SHS said in its report.
As a result, property developers such as Vingroup JSC (VIC), Tan Tao Investment Industrial JSC (ITA) and Da Nang Housing Investment Development JSC (NDN) made gains. These stocks rose 0.2 per cent, 2 per cent and 1.1 per cent, respectively.
Both local markets traded more than 174 million shares worth VND2.5 trillion ($112 million), a decrease of one-fifth from Tuesday's trading value. — VNS