Global uncertainty drags down shares
Global uncertainty drags down shares
Shares tumbled for a second day yesterday as investors increased sales to avert downward risks caused by uncertainties on the global market.
On the HCM Stock Exchange, the VN-Index tracking 314 stocks decreased 0.6 per cent to 667.6 points. It ended down 0.8 per cent on Wednesday.
On the smaller Ha Noi exchange, the HNX-Index measure of 379 stocks dropped 0.8 per cent to close at 80.7 points. It decreased 1.2 per cent in the previous trade.
The US Federal Reserve (Fed) on Wednesday decided to keep the key interest rates unchanged following a two-day meeting, while West Texas Intermediate (WTI) oil dropped 2.9 per cent to US$45.34 per barrel, the lowest since September 28. The Brent crude oil also dipped 2.6 per cent to $46.9 per barrel.On the other end, the US presidential election has witnessed complicated developments.
"Vietnamese investors seemed to be more concerned about US presidential election information rather than domestic issues," stock analysts at Vietnam Investment Securities Co wrote in a note.
They reckoned the benchmark VN-Index retreat below the support level of 670 points would likely push up selling pressure. It also seems investors with highly leveraged trades will suffer.
Blue chips continued to lead the market downturn as 23 of the top 30 largest stocks by market capitalisation lost value.
Some bucked the trend and cushioned the market in the end of the session, such as dairy producer Vinamilk (VNM), real estate giant VinGroup (VIC), lender BIDV (BID) and Mobile World Group (MWG).
Oil and gas stocks recovered despite the slump of global oil prices.
PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Technical Services (PVS) and PetroVietnam Drilling Mud (PVC) increased 2.2 per cent, 2.4 per cent and 1.7 per cent, respectively.
Overall market conditions were negative when the number of falling stocks nearly tripled that of advancing ones.
A total of 169.3 million shares worth a combined VND2.7 trillion ($120 million) were exchanged in the two markets.
Foreign investors were net buyers yesterday in the HCM City's market after a brief net buying session on Wednesday. They picked up shares worth a net buy value of VND90 billion. However, they increased selling in the Ha Noi's market with a net sell value of VND13.4 billion.
