Shares plunge on strong correction pressure

Monday, Jun 13, 2022 17:44

A plant of Binh Son Refinery Company (BSR). BSR lost 6.5 per cent Monday. — Photo

Shares started the week on a negative note, hammered by losses in multiple sectors facing strong correction pressure during the trading time.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index lost 4.44 per cent, to end Monday at 1,227.04 points.

The southern index had lost 0.3 per cent last week.

Nearly 733.5 million shares were traded on the southern bourse, equivalent to VND18.5 trillion (US$797 million).

Market breadth was negative with 458 losers and 38 gainers.

Banking stocks suffered strong selling pressure with losers including Vietcombank (VCB), Bank for Investment and Development of Vietnam (BID), Techcombank (TCB), VietinBank (CTG), Military Bank (MBB), Vietnam International Commercial JS Bank (VIB) and Saigon Hanoi Commercial JS Bank (SHB).

Energy stocks also lost ground, such as Viet Nam National Petroleum Group (PLX), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD) and Drilling Mud Joint Stock Corporation (PVC) and Binh Son Refinery (BSR).

Construction stocks performed poorly, especially those listed on HoSE, with prominent losers such as COMA 18 Joint Stock Company (CIG), Dat Phuong Joint Stock Company (DPG), Mien Dong Joint Stock Company (MDG), Post & Telecommunications Investment And Construction JSC (PTC) and Louis Capital JSC (TGG).

The residential real estate group also witnessed losses in prices. Some attracted strong cash flow and supported the overall market such as C.E.O Group JSC (CEO), Development Investment Construction Corporation (DIG), Long Giang Investment & Urban Development JSC (LGL), Foreign Trade Development & Investment Corporation of HCMC (FDC), NBB Investment Corporation (NBB) and IDJ Vietnam Investment JSC (IDJ), Vingroup (VIC), Vinhomes (VHM), Novaland (NVL), Dat Xanh Group (DXG), Khang Dien House (KDH) and Phat Dat Real Estate (PDR).

The 30 biggest stock trackers VN30-Index decreased 4.89 per cent, to end at 1,260.85 points.

In the basket, only one stock climbed, and 29 slid.

On a sector basis, all 25 sector indices on the stock market lost ground, including insurance, real estate, retail, oil and gas, banking, food and beverage, securities, wholesale, construction, rubber production, agriculture, IT and logistics.

On the Ha Noi Stock Exchange (HNX), the HNX-Index lost 5.90 per cent, to end Monday at 288.37 points.

The northern market index had slipped 1.3 per cent last week.

More than 98.1 million shares were traded on the northern exchange, worth VND2.1 trillion.

In a recent report, Viet Dragon Securities said: “The profit-taking pressure occurred in the strong gaining groups recently, along with the cooling down of large industry groups, causing difficulties for the market's recovery.”

“With this development, it’s expected that the market will return to a state of divergence and struggling.

“Therefore, investors should limit buying stocks and monitor the supportive moves of the market. In the meantime, it is advisable to take advantage of the market's recovery to take profits and restructure portfolios in the direction of reducing risk.” — VNS

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