Shares tumble on market divergence
Shares tumble on market divergence
Shares dropped on Thursday as blue chip stocks diverged and money flowed to companies releasing solid earning results.
The VN Index on the HCM Stock Exchange recovered in the afternoon trade but still closed down 0.37 per cent at 768.41 points. The key southern market index increased 0.5 per cent on Wednesday.
Large-cap stocks were mixed on the HCM City bourse. Sixteen of the top 30 largest firms lost value while 12 gained.
Brewery Habeco (BHN) dropped by a daily maximum 7 per cent, which dragged down the VN-Index.
Despite the global oil prices hitting a six-week high and petrol retail price increasing slightly after two consecutive declines, the biggest oil listed company PV Gas (GAS) dipped 1.1 per cent, while Petrolimex (PLX) slipped 1.5 per cent.
The rubber and retail sectors were badly hit, with major companies including Mobile World Group (MWG), FPT Corp (FPT), Sao Vang Rubber (SCR), Da Nang Rubber (DRC), Southern Rubber Industry (CSM) ticking down between 0.3 per cent and 4.5 per cent.
Rubber shares recorded the biggest drop of 2.6 per cent on average, followed by retail stocks with an average decrease of 1.1 per cent, vietstock.vn data showed.
On the positive side, some banks recovered and cushioned the market.
Four of six listed lenders in the HCM City’s market gained value, of which BIDV (BID) was the biggest gainer with 2.9 per cent; Eximbank (EIB) up 2.2 per cent, Military Bank (MBB) up 1.5 per cent, and Vietinbank (CTG) up 0.5 per cent.
“The market is expected to move sideways in a divergence. Stocks having solid earnings results will still obtain investment in the short term,” said Tran Bach, a stock analyst at Bao Viet Securities Co.
Releasing positive earnings in the second quarter, shares of Refrigeration Electrical Engineering Corp (REE), Pha Lai Thermal Power (PPC) and Imexpharm Corp (IMP) rose 3.1 per cent, 6.6 per cent and 2.8 per cent, respectively.
“However, the market is hardly likely to record a surge,” Bach wrote in a note.
On the Ha Noi Stock Exchange, the HNX Index decreased 0.15 per cent to 98.65 points.
Liquidity continued to decline. A total of 242.5 million shares worth a combined VND4 trillion (US$176.2 million) were traded in the two markets, down 20 per cent in both volume and value compared to Wednesday’s figures.
