Shares dip on poor confidence
Shares dip on poor confidence
Viet Nam’s benchmark VN Index tumbled yesterday, driven by poor investor confidence in the banking and energy sectors.
The benchmark VN Index on the HCM Stock Exchange went down 2.02 per cent to stand at 1,029.08 points. The southern market index was down 6.21 per cent last week.
Bao Viet Securities Co (BVSC) said in its report that selling pressure increased after the recovery, and the market’s supply seemed to strengthen in the last minutes, driven by bank stocks.
The market may stay on a downtrend in the next session, it added.
The stock market was shut down from April 28 to May 1, due to the national Reunification Day (April 30) and Labour Day (May 1) holidays.
On the Ha Noi Stock Exchange, the HNX Index dived 1.36 per cent to 120.97 points. The index fell a total of 7.5 per cent after four trading days last week.
The overall market condition was negative, with 293 declining stocks, 173 gaining stocks and 276 stocks remaining unchanged on the two bourses.
A total of 229 million shares, worth VND6.4 trillion (US$281 million), were traded on the two exchanges.
Stocks in the large-cap VN30 basket also underperformed, pulling the VN30 Index down by 1.47 per cent, or 15 points, to 1,012.84 points, with 22 of the 30 largest stocks by market capitalisation suffering losses.
Dampened investor confidence sent stocks down in 17 of the 20 sectors, of which banks and energy companies were among the worst-hit.
The two industry indices dropped three per cent, 4.3 per cent and 5.8 per cent, respectively.
The banking sector was driven down by the Bank for Investment and Development of Viet Nam (BID), Vietinbank (CTG), Vietcombank (VCB), VP Bank and Military Bank. Those four bank stocks each lost at least 2 per cent. BID and CTG hit the floor, falling 7 per cent.
Among the energy stocks that suffered were PetroVietnam Gas Joint Stock Corporation (GAS), PetroVietnam Technical Services Corporation (PVS), Drilling Mud Joint Stock Corporation (PVC) and PetroVietnam Drilling & Well Services Corporation (PVD).
However, the growth of some large-cap stocks cushioned the market fall. The largest supporters included brewer FPT Digital Retail Joint Stock Company (FRT), Masan Group (MSN) and Hoa Phat Group Joint Stock Company (HPG).
According to BVSC, investors are in pessimistic mood amid the rise of selling pressure in low price ranges, while bottom-fishing cash flows are weak. The slide of some bluechips had negative sentimental impact on the overall market. The market is likely to continue on a downtrend in the next sessions.
According to BIDV Securities Co (BSC), when the market is still in bad condition, investors should avoid further disbursement and limit the bottom catching.
The UPCOM Index on the Unlisted Public Company Market declined by 1.14 per cent to close at 55.92 points.
