VN stocks slide as lack of information hits large-caps

Wednesday, Apr 10, 2019 07:37

An investor checks stock prices on his personal tablet at VNDirect Securities Corporation's trading room. VNA/VNS Photo Tuan Anh

Vietnamese shares slid on Tuesday as large-cap companies faced strong selling amidst a lack of supportive information while investors awaited discussions on the amended securities law.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange fell 0.91 per cent to end at 988.48 points.

The southern market index climbed 0.84 per cent on Monday.

More than 165 million shares were traded on the southern bourse, worth VND4.24 trillion (US$182 million).

Market breadth was negative with 207 declining stocks, while 111 stocks advanced and 45 ended flat.

Fifteen of the 20 sector indices ended Tuesday on a negative note, dragged by real estate, energy and petroleum, rubber and plastics and consumer staples.

Those sector indices lost between 1.1 per cent and 3.1 per cent, data on showed.

The energy and petroleum sector was the worst-performing one on the stock market.

Petro stocks such as PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD) reversed after oil prices encountered volatility on Tuesday.

GAS shed 1.9 per cent while PVD slipped 3 per cent.

Real estate firms also dragged the market down, with the industry index falling 2 per cent.

Among the worst-performing property developers were Vincom Retail (VRE), Vingroup (VIC) and Hoa Binh Construction Group (HBC).

According to MB Securities Co (MBS), the VN-Index slid as leading stocks moved in different directions and pressured market sentiment.

Foreign selling also caused negative movement for the stock market, which ended at a net VND277.4 billion, MBS said in its daily report.

In addition, gloomy earnings forecasts for 2019 for listed companies weighed on investors’ confidence ahead of the National Assembly Standing Committee meeting on April 10-18, in which the draft on amended Law of Securities will be discussed, MBS noted.

“The stock market is clearly in its instability stage as large-cap stocks are still heavyweights. It is likely the VN-Index will fall whenever large-cap stocks are hit by strong selling,” Thanh Cong Securities Co (TCSC) said in a note.

In addition, listed firms are experiencing a lack of supportive information, making investors unwilling to buy their stocks and reducing market liquidity, TCSC said.

Therefore, the VN-Index may struggle at the current level of 990 points in the next trading days with focus shifted to companies with positive first quarter earnings, the company said.

On the Ha Noi Stock Exchange, the HNX-Index slid 1.12 per cent to end at 107.71 points.

The northern market index climbed nearly 1 per cent in the first trading day of the week.

Nearly 48 million shares were traded on the northern bourse, worth VND669 billion. — VNS

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