VN-Index hit hard, creates new low
VN-Index hit hard, creates new low
Shares declined further on Thursday with VN-Index breaking last year’s lowest level of 880.85 points as a series of blue-chip stocks were hit hard, partly due to a falling global market.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 1.52 per cent to end Thursday at 878.22 points. It inched down 0.09 per cent to end Wednesday at 891.75 points.
According to Bao Viet Securities Company, the risk of a short-term downtrend is increasing as the VN-Index broke down the 880-point bottom. The market may keep falling to the lower support zone at 855-865 in the next sessions.
On the Ha Noi Stock Exchange, the HNX-Index shed 2.09 per cent to end at 100.52 points. It had fallen 1.50 per cent to 102.67 points on Wednesday.
More than 190 million shares worth a combined VND3.9 trillion (US$165 million) were traded on the two markets.
Meanwhile, market breadth was negative with 100 stocks gaining and 326 declining, while 328 ended flat.
Vietnamese market’s downward trend is aligned with the world market when Apple cut its Q1 results. For international investors, this information along with weakening Chinese PMI became a warning signal about the negative impact of US-China trade war on economic activities.
According to BIDV Securities Company (BSC), cash flow and market sentiment continue to remain weak, although liquidity has increased but remained to be at a low level. Investors should wait for positive signals and limit transactions at this price range.
Large-cap companies performed poorly with the blue-chip VN30 Index falling 1.97 per cent to 838.79 points.
Bank stocks fell across the board, dragging the overall sector down 2.31 per cent. Losers included Bank for Investment and Development of Viet Nam (BID), losing 4.5 per cent to trade at VND32,000 per share, Asia Commercial Bank (ACB), dropping 3.8 per cent to VND28,100 per share, Vietinbank (CTG), decreasing 4.7 per cent to VND18,100 per share and Military Bank (MBB), down 4.4 per cent to trade at VND18,500 per share.
Oil-gas stocks also slipped on the slide of Petro Vietnam Gas JSC (GAS), Binh Son Refining and Petrochemical Company Limited (BSR), Viet Nam National Petroleum Group (PLX) and PetroVietnam Drilling & Well Services Corporation (PVD).
Real estate stocks also declined by 0.56 per cent, while securities stocks lost 1 per cent. Conversely, insurance stocks gained 0.16 per cent on the rise of Bao Viet Holdings (BVH).
Foreign investors were net buyers for a seventh consecutive session seeing a buying value of VND120 billion.
Some bluechips like steel maker Hoa Phat Group (HPG), confectionary producer Kido Group (KDC), Mobile World Group (MWG), jewellery producer Phu Nhuan (PNJ) and Vincom Retail (VRE), were also hit hard.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) dropped 1.17 per cent to finish at 52.17 points. It lost 0.08 per cent to stand at 52.79 points on Wednesday.
