Shares slump on selling pressure
Shares slump on selling pressure
Shares suffered a strong correction on Tuesday on the two stock exchanges as selling pressure hit many large-caps.
The benchmark VN-Index on the HCM Stock Exchange dropped 0.52 per cent to close at 1,198.12 points. It had gained 0.36 per cent on Monday.
According to Bao Viet Securities Company (BVSC), the VN-Index is predicted to keep moving sideways around the 1,200 threshold in the next sessions, but could still hit 1,250-1,270 in the high range in the short term.
“However, the index could still suffer some volatility and corrections while increasing, especially when reaching new highs,” BVSC said in its daily report.
The HNX Index on Ha Noi Stock Exchange fell 0.80 per cent to end at 136.68 points, extending its downtrend from the previous 0.2 per cent decline.
More than 353.4 million shares worth VND10.3 trillion (US$456 million) were traded on the two local exchanges.
Declining stocks dominated the two bourses, outnumbering gainers by 318 to 148, which proved that investor confidence was low in the morning session.
Large-cap stocks underperformed as the VN30 Index lost 0.82 per cent to reach 1,168.06 points, with 19 declining stocks against nine gainers among the 30 largest stocks by market capitalisation.
Large-cap stocks fell across the board, including dairy firm Vinamilk (VNM), property developer Vingroup (VIC), PetroVietnam Gas Joint Stock Corporation (GAS) and Vietinbank (CTG).
The UPCOM Index on the Unlisted Public Company Market fell 0.05 per cent to stay at 60.42 points, reversing its previous 0.36 per cent rally.
Foreign investors today were net buyers of VND56.92 billion on HOSE, focusing on HCM City Development Bank (HDB) with VND190.4 billion, VNM with VND59.9 billion and Sai Gon Securities Incorporation (SSI) with VND55 billion. In addition, they bought a net of VND23.88 billion on the HNX.
Across the stock market, the securities, real estate, agriculture and retail sectors were the worst-performing industries.
Their indices declined between 0.4 per cent and 2.6 per cent, according to data of vietstock.vn.
Worst performers in the securities sectors included Sai Gon Securities Incorporation (SSI), Viet Capital Securities Joint Stock Company (VCI), Ho Chi Minh City Securities Corporation (HCM), VNDirect Securities Corporation (VND) and FPT Securities Joint Stock Company (FTS), each falling between 0.86 and 2.17 per cent.
Meanwhile, insurance-finance companies and banks as well as energy firms lifted the indices against the poor performance of other sectors.
According to BIDV Securities JSC (BSC), the indices are in the adjustment period after a long rally, waiting for information relating to the world’s economic and political situation. Investors should be cautious with new disbursements, lowering the margin rate in this sensitive market.
Bao Viet Securities Company (BVSC) said in its daily report that selling pressure increased after a lengthy period of uptrend in the VN-Index, signaling bad news for the overall market. However, in the season of firms’ annual general meetings (AGM), the market will diverge based on each company’s result.
