Selling pressure pushes shares down
Selling pressure pushes shares down
Shares declined steeply yesterday under heavy selling pressure in an unexpected fall after Thursday's rebound.
On the HCM Stock Exchange, the VN-Index fell to a two-month low at 565.33 points, down 2.58 per cent from the previous session.
Blue chips lost momentum, driving down the market. All 30 shares by market value and liquidity shed their value, pushing the VN30 down 3.32 per cent to end at 621.13 points.
Heavyweight shares including Bao Viet Holdings (BVH), Masan Group (MSN), VinGroup (VIC), PV Gas (GAS), Vinamilk (VNM) and Phu My Fertiliser all tumbled. Of these, MSN was the biggest loser with share prices falling 6.3 per cent to just VND89,500 a share (US$4.24).
The market value decreased 10 per cent from Wednesday, reaching nearly VND2 trillion ($94.8 million) on a total volume of 117 million shares and fund certificates.
The continuing decline stirred panic among investors and triggered a rush to unload shares. Many offered to sell at reduced prices, driving many share values to the floor.
As many as 448 of total 682 codes on both exchanges lost value, 127 of them significantly.
"This has shocked many new investors. The market has kept rising since September last year that attracted big money inflows," said analysts of financial website vietstock.vn.
Real estate developer FLC Group (FLC) was again the most active code on the southern bourse with 11.2 million shares traded. Its price slid 6.6 per cent to settle at VND12,800 a share.
Tan Tao Investment Industry Corporation (ITA) came second on a total trading volume of 6.9 million shares, slipping 6.5 per cent to end at VND8,700.
In Ha Noi, the HNX-Index tumbled 3.62 per cent to close yesterday at 80.58 points.
The HNX30, tracking the top 30 shares on the bourse, also went down 5.29 per cent to end at 162.99 points, the biggest drop in its history.
Trading improved, however, as the volume was up 20 per cent to 67 million shares, worth VND686 billion ($32.5 million), more than 10 per cent over Wednesday.
PetroVietnam Construction Corp (PVX) was the most active code with 11.1 million shares traded but its value went down 9.43 per cent to close at VND4,800 per share. Saigon-Ha Noi Bank (SHB) followed with 8.2 million shares changing hands at VND10,100 each, down 7.34 per cent from the previous session.
In contrast to local investors' moves, foreign investors stopped net selling and returned as net buyers on both exchanges yesterday. They picked up shares worth a combined VND94.23 billion ($4.5 million) from the two markets.
vietnamnews
