Shares recede on worries of foreign selloffs

Tuesday, Apr 07, 2020 19:06

Vinhomes JSC's Skylake project in Nam Tu Liem District, Ha Noi. Vinhomes (VHM) hit the daily limit rise of 7 per cent on Tuesday. — Photo vietnamnet.vn

Shares continued to advance on Tuesday but receded from Monday’s peak due to prolonged foreign net selling amid fears of a slowdown in the global economy.

Viet Nam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) gained 1.35 per cent to end trading at 746.69 points.

The VN-Index jumped 4.98 per cent to end Monday at 736.75 points, its largest one-day percentage gain in nineteen years.

Nearly 293 million shares were traded on the southern exchange, worth VND4.8 trillion (US$206.3 million).

Large-cap tracker, the VN30-Index, gained 1.61 per cent to close at 693.61 points.

In the VN30 basket, 16 of the 30 largest stocks by market capitalisation and trading liquidity made gains while 10 declined. Four stayed unchanged.

With fears of a global recession and corporate defaults running high, foreign investors showed no signs of stopping their massive capital withdrawals from emerging markets. On the Vietnamese market, foreign investors continued to be net sellers on the both the HoSE and HNX, further damping investor sentiment.

On HoSE alone, foreign investors net sold for the sixth consecutive session on Tuesday, offloading VND364.63 billion worth of Vietnamese shares, corresponding to a net volume of 13.4 million shares.

On the HNX, they were net sellers with a value of VND2.74 billion.

On Tuesday, shares retreated at the beginning of the session due to profit-taking pressure, but shortly thereafter reversed and sustained the upward momentum till the end of the session.

Notable gainers included Vinhomes (VHM) (+7 per cent), Vinamilk (VNM) (+2.4 per cent), Vincom Retail (VRE) (+7 per cent), brewery Sabeco (SAB) (+3.8 per cent), Masan Group (MSN) (+2.9 per cent), VPBank (VPB) (+3.7 per cent), Bank for Investment and Development (BID) (+0.8 per cent), Vietcombank (VCB) (+0.3 per cent), Military Bank (MBB) (+1.3 per cent), and Hoa Phat Group (HPG) (+0.8 per cent).

In contrast, some other pillars continued to adjust such as Viet Nam National Petroleum Group (PLX) (-3.1 per cent), Vietjet (VJC) (-0.9 per cent), Vietinbank (CTG) (-1.2 per cent), PVPower (POW) (-1.8 per cent), and Novaland (NVL) (-0.6 per cent).

The HNX-Index on the Ha Noi Stock Exchange inched up 0.16 per cent to close Tuesday at 103.43 points.

Nearly 48.2 million shares were traded on the northern bourse, worth VND468 billion.

On the HNX, blue-chips like Saigon-Hanoi Bank (SHB) (+2.1 per cent), PetroVietnam Technical Services Corporation (PVS) (+4.4 per cent), Vicostone (VCS) (+0.8 per cent) gained ground, helping the index to recover for the fourth session in a row.

The VN-Index is forecast to face profit-taking pressure with volatility at the support zone of 750-755 points during the next session, said Bao Viet Securities Co (BVSC).

“The market is following a short-term uptrend toward 780-820 points. However, we leave open the possibility of a throwback toward 700-720 points during the recovery,” BVSC said.

Positive developments in containing COVID-19 pandemic and the improvement of global stock markets are expected to support the market’s recovery. However, the Vietnamese stock market was still oppressed by prolonged foreign selling, the company said. — VNS

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