Shares fall despite record liquidity

Shares fall despite record liquidity

Both national stock exchanges saw shares tumbling yesterday against intense selling pressure, but liquidity set an all-time record high.

The trading value on both bourses totalled nearly VND5.5 trillion (US$262 million) – a record high – after five trading sessions each having a value above VND3 trillion ($142 million) on the exchange of 400 million shares in total.

However, the red colour spread across the billboards and even blue chips suffered. On the HCM City Exchange, the VN-Index on the southern bourse slid 1.22 per cent to end at 571.04 points.

According to FPT Securities, the 580-point level indicated strong resistance, and the benchmark index experienced deep losses before approaching this level.

Transactions were exciting during the trading session, where just shy of 260 million shares changed hands, with a total trading value of VND4 trillion ($190.5 million).

However, selling pressure overwhelmed buying demand, causing 241 codes to lose value, while only 49 codes managed to increase.

Tracking the southern city's largest shares by capitalisation and liquidity, the VN30-Index lost 11.73 points yesterday to end at 638.7 points, due to huge losses from 24 codes.

Ocean Group (OCG) slipped by VND800 ($0.038) to its floor price of VND12,000 ($0.57), while PetroVietnam Transportation Corporation (PVT) also dropped to its floor price of VND13,400 ($0.63) after a loss of VND1,000 ($0.047) per share.

PetroVietnam Drilling (PVD) slid VND5,000 ($0.23) per share yesterday to VND75,500 ($3.5).

Big names that posted losses of more than VND1,000 ($0.047) per share each yesterday included insurance giant Bao Viet Group (BVH), FPT Group (FPT), Southern Rubber Corporation (CSM) and Da Nang Rubber Corporation (DRC). PetroVietnam Fertilisers and Chemicals Corporation (DPM), Hoa Sen Group (HSG), Hoa Phat Group (HPG) and Hoang Anh Gia Lai (HAG) were also counted in this group.

Only Masan Group (MSN), Eximbank (EIB) and Vietinbank (CTG) managed to add value yesterday.

Sell-offs also dragged down the benchmark indices on the Ha Noi Exchange.

The HNX-Index closed 3.42 per cent lower to end at 79.51 points, and the HNXFF-Index, composed of stocks with a minimum free-float rate of 5 per cent, lost 3.51 per cent to reach 78.65 points.

Blue chips suffered huge losses, making the HNX30-Index tumble 4.9 per cent to end yesterday at 158.62 points.

The bourse's liquidity was high, however, with a trading value of VND1.44 trillion ($68.5 million) on the exchange of more than 148.7 million shares.

In the capital city, decliners overwhelmed gainers by 205-66.

FPT Securities noted that there was no information strong enough to directly cause such losses yesterday.

Still, the company was optimistic about the market recovery given the net buying activity of foreign investors.

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