Shares fall for four consecutive sessions

Saturday, Jun 01, 2019 08:14

People buy gasoline at a Petrolimex petrol station in Tran Hung Dao Street in Ha Noi. Shares of Petrolimex declined 2.6 per cent yesterday. — VNS Photo Mai Huong

Shares declined for a fourth consecutive session on Friday on the two national stock exchanges due to volatility on world markets and a sharp fall of oil stocks.

On the Ho Chi Minh Stock Exchange, the VN-Index lost 0.98 per cent to close the day at 959.88 points.

The index lost a total of 0.60 per cent in the previous three trading days.

More than 136.5 million shares were traded on the southern market, worth VND3.2 trillion (US$139 million).

The HNX-Index on the Ha Noi Stock Exchange decreased 0.92 per cent to end at 104.35 points.

More than 28.2 million shares were traded on the southern market, worth VND376 billion (US$15.9 million).

According to the BIDV Securities Company (BSC), the market continued to adjust and this was the fourth consecutive correction session as domestic and regional market investors worried about global economic outlook as the Sino-US trade war had yet to show signs of improvement.

Petroleum stocks were the worst-performing in the morning session, following a tumble of oil prices on Thursday night.

Brent crude dipped 0.94 per cent to end Thursday at $69.45 a barrel.

On the Vietnamese stock market, PetroVietnam Gas (GAS) fell 3.5 per cent, PetroVietnam Technical Services Corporation (PVS) lost 4.6 per cent, PetroVietnam Power Corporation (POW) fell 2.9 per cent, Binh Son Refining and Petrochemical Company Limited (BSR) moved down 2.2 per cent, Viet Nam National Petroleum Group (PLX) declined by 2.6 per cent and PetroVietnam Drilling and Well Services (PVD) declined by 5 per cent.

The poor performance of the energy sector pulled down other industries like real estate, agriculture, food and beverage, logistics, construction, banking, insurance, securities, healthcare and pharmaceuticals and seafood processing.

Foreign investors today bought a net VND203.71 billion on the HOSE, focusing on Hoa Phat Group (HPG) (VND41.66 billion), Vietcombank (VCB) (VND26.34 billion) and Viet Nam National Petroleum Group (PLX) (VND26.05 billion). However, they sold a net VND1.04 billion on the HNX.

According to Bao Viet Securities Company (BVSC), next week, the VN-Index is forecast to receive support from the 955-960-point zone. The index is expected to recover in this zone to head toward the resistance zone of 968-972 points.

However, if the aforementioned support zone is broken, the market would drop toward the support zones of 935-945 or 910-920 points.

Oil and gas stocks will face correction pressure in several sessions next week before a possible recovery toward the end of the week, as global oil prices encounter correction pressure. Banks and several large-cap stocks will maintain their downtrend next week, the company said.

As the market is currently in a downtrend, stock exposure should be limited at below 20 per cent of the portfolio, the firm advised. — VNS

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