VN stocks fall for third straight day
VN stocks fall for third straight day
Vietnamese shares slid further on both local exchanges as investor confidence in financial firms remained low, following the US central bank's announcement on Thursday.
The benchmark VN Index on the HCM Stock Exchange dropped 0.7 per cent to finish at 614.81 points, losing a total of 1.6 per cent in the last three sessions.
The HNX Index on the Ha Noi Stock Exchange inched down 0.1 per cent to end at 81.75 points, extending a three-day decline of 0.6 per cent.
"There was no improvement in investor confidence, amid fears that the US central bank may raise its interest rates in June," Sai Gon-Ha Noi Securities Corp (SHS) wrote in its daily report.
That fear resulted in a net foreign-selling value during the last two sessions of the week, as foreign investors tried to withdraw from local assets, SHS said.
Foreign investors recorded a net selling value of VND103 billion (US$4.6 million) yesterday, totaling their net selling value of VND230 billion during the last two trading days.
That selling activity came on investors' fears that the US central bank will raise interest rates in June, which could weaken other currencies, including the Vietnamese dong, against the US dollar and reduce their profitability in local assets.
In Viet Nam's market, the daily reference mid-point rate set by the central bank added another VND8 to VND21,918 for a dollar. It has gained VND28 in two days.
Low investor confidence brought financial firms down, such as banks, insurance companies and brokerage units.
Sacombank (STB) suffered the biggest loss of 4 per cent among banks, while other large-cap bank stocks such as Vietcombank (VCB), Vietinbank (CTG), the Bank for Investment and Development of Viet Nam (BID), and Asia Commercial Bank (ACB) fell between 0.8 per cent and 1.6 per cent.
Insurer Bao Viet Holdings (BVH) and BIDV Insurance Corp (BIC) pulled the insurance sector down. These stocks decreased by 3.3 per cent and 1.4 per cent, respectively.
Other blue chips which also suffered from foreign selling included consumer goods producer Masan Group (MSN), property developer Vingroup JSC (VIC), conglomerate Hoang Anh Gia Lai JSC (HAG), and its subsidiary HAGL Agricultural JSC (HNG).
Meanwhile, energy stocks recovered after a two-day decline as global oil prices showed improvement and US crude output slid further.
PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Mud Drilling Corp (PVC) and PetroVietnam Technical Service Corp (PVS) were up between 0.6 per cent and 1.7 per cent.
Both local markets traded more than 175 million shares worth VND3.48 trillion, an increase of 16 per cent from Thursday's trading value.
