Shares plummet on local sell-offs

Shares plummet on local sell-offs

The benchmark indices posted huge losses yesterday as the blue chips were in the red and selling activities dominated the session.

On the HCM City Exchange, the VN-Index tumbled 2.23 per cent – the largest drop since August last year – to finish at 573.38 points.

Most blue chips slid, causing the VN30-Index which tracks the southern city's top shares by capitalisation and liquidity, to post a greater loss of 2.99 per cent to end at 643.95 points.

Among the VN30 stocks, only Hoa Phat Group (HPG) and PetroVietnam Transportation Corporation (PVT) managed to increase yesterday, making modest gains of VND100, or $0.0074, per share, while Kinh Do (KDC) and Becamex IJC (IJC) kept their reference prices.

Meanwhile, Masan Group (MSN) declined 4.9 per cent to end at VND97,000, or $4.6, per share and PetroVietnam Drilling Corporation (PVD) lost 4.3 per cent to finish at VND78,000, or $3.7, per share.

Technology firm FPT Group (FPT), Hoa Sen Group (HSG), Pha Lai Thermoelectric Company (PPC), REE Corporation (REE), real estate giant Vingroup (VIC), Sacombank (STB), property developer Hoang Anh Gia Lai (HAG), PetroVietnam Fertilisers and Chemicals Corporation (DPM) and Southern Rubber Corporation (CSM) also made losses.

Overall, on the southern bourse yesterday, only 45 codes managed to add value while 212 codes slid. As the selling pressure intensified in the afternoon trading and completely dominated it, the benchmark index slid abruptly.

However, a significant capital inflow was injected into the market with the trading value on the southern bourse reaching more than VND2.3 trillion, or $109.5 million, on the exchange of nearly 143.3 million shares.

On both the bourses, the trading value totalled more than VND3.2 trillion, or $152.3 million, which was still at a high level.

During the past two weeks, the losses of benchmark indices often went along with improved liquidity, as seen on February 20 and 27, reflecting the activeness of sellers, a stock analyst said.

The losses were even larger on the Ha Noi Exchange. The HNX-Index dropped 3.2 per cent to end at 80.46 points, while the HNXFF-Index, composed of stocks with a minimum free float rate of 5 per cent, lost 3.07 per cent to close at 80.1 points.

The selling pressure was also strong on the blue chips, dragging down the HNX30-Index by 4.11 per cent to end yesterday at 159.26 points.

The capital inflow shifted among the different stock categories which helped maintain the high level of liquidity. More than 95 million shares changed hands with a total value of VND888.8 billion, or $42.3 million.

PetroVietnam Construction Joint Stock Corporation (PVX) continued to lead the bourse by liquidity with nearly 14 million shares being traded.

Only 59 codes on the northern bourse added value yesterday, while 201 others tumbled.

Although there was no negative information heard yesterday, the market posted huge losses, according to Viet Nam Investment Securities, which added that the losses might continue to occur in several coming trading sessions, though they might be milder as the financial pressure would ease.

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