VN stocks plunge, extending four-day rout
VN stocks plunge, extending four-day rout
Vietnamese shares fell sharply yesterday on both local exchanges as energy stocks slumped after crude prices set fresh twelve-year lows.
The benchmark VN Index on the HCM Stock Exchange fell 3.1 per cent to close at 526.37 points, bringing losses over the last four sessions to 6.7 per cent.
The HNX Index on the Ha Noi Stock Exchange dropped 2.8 per cent to finish at 73.26 points, extending three-day losses to 4.4 per cent.
Energy stocks continued their recent declines after crude prices dropped to fresh twelve-year lows on global markets.
The US benchmark crude West Texas Intermediate (WTI) lost 1.2 per cent to trade at US$29.07 a barrel and has decreased 22 per cent since the end of last year. London-traded Brent crude was down 1.3 per cent to trade at $28.56 a barrel and has fallen 23 per cent.
Local energy stocks that were hit by low crude prices included PetroVietnam Gas Corporation (GAS), which fell 7 per cent, PetroVietnam Drilling and Well Services Corporation (PVD), which slumped 6.3 per cent, and fuel dealer Petrolimex Gas Corporation (PGC), which slid 5.7 per cent.
Meanwhile, investor confidence remained low after Asian stocks fell following a sell-off on the US stock markets last week, putting pressure on local large-cap stocks, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in a report.
Financial firms continued to suffer the most from low investor confidence. Vietcombank (VCB) lost 4.9 per cent, insurer Bao Viet Holdings (BVH) fell 3.6 per cent, brokerage firm Saigon Securities Incorporate (SSI) dropped 3.5 per cent, and the Bank for Investment and Development of Viet Nam (BID) slumped 6.7 per cent.
Other large-cap stocks that also helped pull the markets down included Vinamilk (VNM), which fell 2.5 per cent, software provider FPT Corporation (FPT), which lost 2.6 per cent, and fishery firm Hung Vuong JSC (HVG), which was down 5.8 per cent.
The stock markets yesterday traded nearly 230 million shares worth VND3.1 trillion ($138 million), an increase of nearly 50 per cent over last week's daily average trading value and higher than last year's daily average trading value of $111 million.
