Shares nosedive on massive selling force

Wednesday, Oct 12, 2022 07:04

Nhon Trach 2 Thermal Power Plant, run by PV Power (POW). POW lost 7 per cent Tuesday. — Photo

Vietnamese shares lost ground in a volatile session on Tuesday as bargain-hunting demand failed to rescue the market, which was ravaged by a continued and massive selling force.

The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed the day at 1,006.20 points, a decrease of 3.48 per cent. It had gained slightly 0.63 per cent thanks to bargain purchases on Monday.

The market's sentiment was negative with more stocks decreasing, of which 46 stocks inched higher and 435 reduced. Liquidity increased compared to the previous session, with more than 672 million shares traded, equivalent to a value of VND12.9 trillion (US$539 million).

The index's reversal was caused by some pillar stocks as the 30 biggest stocks tracker VN30-Index posted a loss of 3.59 per cent, to finish Tuesday at 1,001.68 points. Of the VN30 basket, one stock climbed, while 28 declined and one stock ended flat.

Among the worst performers were Military Bank (MBB), PV Power (POW), SSI Securities (SSI), Sacombank (STB), Techcombank (TCB), Tien Phong Bank and Vincom Retail (VRE), all hitting the daily limit decline of 7 per cent.

Persistent sell-off pressure hit many key sectors of the market. On a sector basis, all 25 sector indices on the stock market lost ground, including insurance, oil and gas, banking, wholesale, construction, rubber production, IT and logistics, agriculture, real estate, food and beverage, retail, healthcare, seafood production, construction materials, securities, and plastic and chemical production.

The HNX-Index on the Ha Noi Stock Exchange (HNX) also ended lower. The northern market index lost 4.82 per cent, to close Tuesday at 218.78 points. It had gained 1.66 per cent to close Monday at 229.85 points.

Nearly 73.9 million shares were traded on the HNX, worth VND1.1 trillion.

"Regarding the transactions of foreign investors, they were net buyers on both HoSE and HNX. In the coming sessions, it is likely that VN-Index will struggle around 1,000 points," said BIDV Securities Co.

Foreign investors net bought VND159.92 billion on HOSE, including Vingroup (VIC) with VND65.56 billion, Duc Giang Chemical (DGC) with VND49.01 billion, Vinamilk (VNM) with VND47.43 billion. They were net buyers on HNX with the value of VND2.05 billion. VNS

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