VN Index down on low investor confidence
VN Index down on low investor confidence
Shares declined on the HCM Stock Exchange on Thursday as the market was hit by poor investor confidence due to a lack of supportive information and by intraday profit-taking.
The benchmark VN Index dropped 1.14 per cent to close at 833.09 points. It rose as much as 0.8 per cent during the session.
The benchmark stock index retreated after gaining 0.65 per cent on Wednesday.
More than 192.7 million shares were traded on the southern bourse, worth VND4.35 trillion (US$193.4 million).
The market trading condition remained negative with 177 declining stocks, 101 gaining ones and 43 others unchanged.
The VN30 Index that tracks the movement of the 30 biggest stocks by market capitalisation and trading liquidity fell 0.92 per cent to 827.66 points.
Among blue chips that suffered most were FLC Faros Construction (ROS), digital retailer Mobile World (MWG), DHG Pharmaceutical Co (DHG) and logistics firm Gemadept (GMD).
Small- and medium-cap stocks also traded in the negative territory such as agriculture conglomerate Hoang Anh Gia Lai (HAG), HAI Agrochemicals Co (HAI) and property developer An Duong Thao Dien JSC (HAR).
According to analysts at Sai Gon-Ha Noi Securities Co (SHS) and Bao Viet Securities Co (BVSC), shares on the HCM Stock Exchange were hit by strong investors’ selling after the VN Index got near the 850-point level during the day.
“The market trading seems to be affected by negative investor sentiment as they worried about November,” SHS wrote in its daily report.
November is always the most difficult time for the stock market as investors are lack supportive information, thus making them unwilling to make new purchases, it said in a note.
Stocks in the three groups finished the day in the negative territory, proving that investor sentiment remained quite poor and the trading on the market had become more risky for investors, thus reducing their opportunities to make profits, the two companies said.
The two companies forecast that the VN Index might fall further on Friday. This would ease selling pressure and help the market settle before any attempts are made to boost the benchmark index up.
The nearest supportive level for the VN Index would be 830 points, SHS said. A potential deeper level that the benchmark index could fall to is the range of 815-820 points, according to BVSC.
On the Ha Noi Stock Exchange, the HNX Index slumped 1.48 per cent to end at 103.42 points. The northern market index has decreased by a total of 2.8 per cent after the last four sessions.
More than 51 million shares were traded on the northern market, worth VND727 billion.
