Shares slide, money flows into industrial sector

Wednesday, Aug 07, 2019 07:43

Investors at a Maybank Kim Eng brokerage house. Viet Nam's benchmark VN-Index decreased 0.88 per cent to close Tuesday at 964.61 points. – Photo

Local shares continued to slide on Tuesday amid rising foreign net selling.

On the Ho Chi Minh Stock Exchange, the VN-Index decreased 0.88 per cent to close Tuesday at 964.61 points.

On the Ha Noi Stock Exchange, the HNX-Index closed down 0.99 per cent at 101.89 points.

Both stock indices also fell on Monday.

Nearly 254 million shares worth total VND9.1 trillion (US$390.6 million) were traded on the two markets.

Overall market condition was negative with 296 shares tumbling, 160 rising and 310 closing unchanged.

The market narrowed morning losses with growth of Vingroup (VIC) which gained 1.5 per cent; Phu Nhuan Jewellery (PNJ), up 3.8 per cent; logistics firm Gemadept (GMD), up 2.2 per cent; and FLC Faros Construction (ROS), up 1.4 per cent.

However, the market was dampened when 22 of the 30 leading stocks by market value and liquidity on the Ho Chi Minh Stock Exchange lost value, including big names such as Vinhomes (VHM), Bao Viet Holdings (BVH), Masan Group (MSN), Masan Group (MSN) and Saigon Securities Inc (SSI) with each declining more than 2 per cent.

The cash flow continued to flow into the industrial sector.

Industrial real estate developers including Sonadezi (SNZ), Vietnam Rubber Industrial Zone and Urban Development (VRG) and Tan Tao Investment and Industry Corp (ITA) hit the daily upper limit of their listing exchanges of between 7 per cent and 15 per cent.

Other gainers included Kinh Bac City Development (KBC), Idico (IDC) and Investment and Industrial Development (BCM) rose by more than 6 per cent each.

“The market continued to have a correction session similar to other countries in the region when US-China trade tensions showed signs of escalation and would likely spark a monetary war between the two powers,” analysts at BIDV Securities Co commented in a daily report.

The VN-Index was likely to adjust to the old support zone of 940-950 points and accumulate around this area in the coming sessions, they said.

According to Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, the market faced disadvantages with foreign investors becoming net sellers.

The foreign investors extended their net selling value on Tuesday to VND243 billion ($10.4 million) on the HCM City exchange, down 16 per cent compared to Monday’s value, but this was also their fourth net selling session with total value of VND834 billion.

On Ha Noi’s bourse, their net selling value increased 74 per cent over the previous session to VND26.7 billion. – VNS

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