Money keeps leaving market
Money keeps leaving market
Shares underperformed on Monday as money continued to leave the market in face of a downtrend.
Viet Nam’s benchmark VN-Index on the HCM Stock Exchange closed down 2.46 per cent at 1,014.98 points. The southern market index decreased 0.4 per cent last week.
On the Ha Noi Stock Exchange, the HNX-Index edged down 1.33 per cent to end Monday at 119.66 points. The northern market index lost more than 1.2 per cent the previous week.
Monday’s trade was similar to previous sessions as weak demand promoted strong supply, especially in leading stocks like VinGroup (VIC), dairy firm Vinamilk (VNM), PV Gas (GAS) and insurer Bao Viet Holdings which slumped between 3-7 per cent each.
The decline of nearly 7 per cent of VinGroup was unexpected as the conglomerate has just announced its revenue and profit growth targets of 34 per cent and 50 per cent, respectively, as well as dividend plan of 21 per cent in the second quarter.
In the VN30 basket which tracks the top 30 largest shares by market value and liquidity on the HCM Stock Exchange, 25 stocks lost while only five gained.
Banks and securities companies were among the biggest losers with Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) – the top three biggest lenders by market value and assets – tumbled 1.4 per cent, 2.2 per cent and 4.4 per cent, respectively.
Vietcombank and BIDV have declined for four sessions in a row.
“Selling pressure increased in the last minutes today, increasing the risk of the VN-Index breaking down the old bottom below 1,000. Low liquidity was still raising concern among investors in the market,” said Tran Hai Yen, a stock analyst at Bao Viet Securities Company (BVSC).
More than 158 million shares worth VND4.24 trillion (US$186 million) were traded in the two markets, down 35.8 per cent in volume and 61.5 per cent in value compared with last week’s average daily volume and value.
Money fled the market while supply was increasing after the market moved sideways over the past two weeks, Yen said.
Foreign investors continued to sell, with a net sell value of nearly VND440 billion on the two exchanges, focusing on blue chips including VinGroup, Vincom Retail and Vinamilk.
