Shares tumbled again on the two local exchanges yesterday as foreign investors continued offloading local assets, putting pressure on market sentiment, and pessimism on an OPEC deal pulled energy sector down.
The benchmark VN Index on the HCM Stock Exchange fell 1.1 per cent to close at 658.26 points. The southern market index has lost 3.6 per cent in the last four sessions.
The HNX Index on the Ha Noi Stock Exchange inched down 0.1 per cent to end at 80 points, falling a total of 1.7 per cent after four trading days.
Foreign investors yesterday remained net sellers for the ninth consecutive session with a total net sell value of VND252.63 billion (US$11.2 million) made on both local exchanges.
“Yesterday’s session gave no hint to whether foreign investors will stop net-selling local shares and that (net foreign selling) still affected other investors’ confidence in a negative way,” BIDV Securities Corp (BSC) said in a note.
In addition, investors were also waiting before foreign exchange-traded funds (ETFs) finish their portfolio review this week and the forex rate between the Vietnamese dong and the US dollar continued to be volatile.
The State Bank of Viet Nam yesterday set its daily reference mid-point rate for forex trading between the dong and the dollar at VND22,121 for a dollar.
Of the 10 largest companies by market capitalisation, Faros Construction Corp (ROS), consumer goods producer Masan Group (MSN), property developer Vingroup (VIC), Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Viet Nam (BID) all declined.
Dairy firm Vinamilk (VNM) remained as the must-sold stock in foreign portfolios. Foreign investors yesterday offloaded a net value of VND229.66 billion worth of Vinamilk’s shares.
However, VNM rebounded 4 per cent to end at four-day decline of 8.2 per cent after the State Capital Investment Corporation (SCIC) announced its final price for 9 per cent of shares in Vinamilk at VND144,000 per share.
The energy sector performed poorly yesterday, undermined by low investors’ worries over whether the Organisation of Petroleum Exporting Countries (OPEC) could resolve its internal differences among members to reach a deal on production cut, which is expected to boost oil prices and stabilise the market.
US crude West Texas Intermediate (WTI) fell 1.8 per cent to trade at $46.24 a barrel and Brent crude dropped 1.5 per cent to trade at $47.5 a barrel.
Market trading liquidity decreased from Monday. More than 166.2 million shares were exchanged yesterday, worth VND3.14 trillion. — VNS