Local shares declined yesterday on the two national stock exchanges as foreign investors increased selling caused by uncertainty on the fate of the Trans-Pacific Partnership (TPP).

The benchmark VN-Index, the measure of 314 stocks on the HCM Stock Exchange, edged down 0.9 per cent to close at 673.1 points. The index had gained 1.9 per cent last week.

On the Ha Noi Stock Exchange, the HNX-Index tracking 377 stocks inched down 0.3 per cent to 80.9 points. It increased 0.9 per cent in the previous week.

Foreign investors were net sellers in HCM City’s market yesterday for a total value of VND272 billion (US$12.2 million). They sold shares worth VND522 billion, making up 21.2 per cent of total trading value in the market, while picking up only VND250 billion worth of net buy value.

Heavy selling pressure dragged down stock prices of large-cap companies. Private equity business Masan Group (MSN) plunged 4 per cent. Dairy giant Vinamilk (VNM) slipped 2.6 per cent. Real estate developer VinGroup (VIC) fell 2.5 per cent and lender BIDV (BID) decreased 2.2 per cent.

Of the top 30 largest shares by market capitalisation, only seven advanced and up to 23 stocks tumbled.

“Traders were uncertainty about the fate of Trans-Pacific Partnership after the Obama administration suspended the trade deal,” stock analysts at FPT Securities Company wrote in a report.

The destiny of TPP will depend on newly-elected US President Donald Trump and Republican lawmakers who were not in favour of the deal, in which Viet Nam is reportedly the biggest beneficiary.

Overall market condition was negative when the number of losing stocks outnumbered that of gaining ones by 246-188. Another 257 closed unchanged.

On the bright side, FAROS Construction Corporation (ROS) hit the daily limit rise of 7 per cent to VND116,200, roughly 10 times higher than the starting price on the floating day on October 14.

Investors bet on mineral and coal shares following sharp rises in prices of “black gold” in the global markets.

Coal prices have begun to recover since early this year after more than eight years of decline. As of November, coal price has increased by 112 per cent, the best performer this year compared with other energy commodities.

Local coal shares hit the ceiling prices of 7-10 per cent yesterday, including Vinacomin – Nui Beo Coal (NBC), Vinacomin – Coc Sau Coal (TC6), Vinacomin - Ha Tu Coal (THT) and Bac Giang Exploitable Mineral (BGM).

Liquidity increased with a total of 159.6 million shares worth VND 2.8 trillion traded in the two markets, up 38.8 per cent in volume and 47.4 per cent in value compared to the previous session’s levels. – VNS