Stocks retreat on Donald Trump leading US President election
Stocks retreat on Donald Trump leading US President election
Shares fell on the two local exchanges this morning as investors were kept on edge waiting for the final result of the US presidential election.
The benchmark VN Index on the HCM Stock Exchange dropped 1.3 per cent to close at 668.01 points and the HNX Index on the Ha Noi Stock Exchange slipped 1.1 per cent to end at 80.34 points.
The fall of the local stock indexes was attributed to the ongoing US presidential election. Republican Donald Trump is currently in the lead against Democrat rival Hilary Clinton.
Analysts said Trump's victory would hurt Viet Nam's exports to the United States, which remained the largest trade partner to Viet Nam with total export value of US$28 billion in the first nine months.
The news had a negative effect on the stock market, with 19 out of 20 sectors incurring losses, especially brokerage, insurance, banking and energy sectors, while none of the 30 largest stocks by market capitalisation on the VN30 Index made gains.
Decliners included dairy producer Vinamilk (VNM), PetroVietam Gas Corp (GAS), Vietcombank (VCB) and Bank for Investment and Development of Viet Nam (BID), as well as consumer goods producer Masan Group (MSN), insurance-finance group Bao Viet Holdings (BVH) and property developer Vingroup JSC (VIC).
Market trading liquidity also remained low as investors were held back from making investments.
More than 92.8 million shares were exchanged this morning worth VND1.71 trillion ($76.25 million).
The chance of Trump winning the election pushed crude prices down more than three per cent this morning and increased gold prices and the US dollar-dong exchange rate in the local market from Tuesday.
Sai Gon Jewellery JSC (SJC)'s gold price rose VND340,000 per tael (1.02 ounces) to VND36.2-36.62 million per tael. Bao Tin Minh Chau Gold and Jewellery Company increased its gold selling price by VND200,000 per tael to VND36.25 mllion-36.75 million per tael.
