VN-Index drops for third day, dragged down by heavyweight stocks
The VN-Index on the Ho Chi Minh Stock Exchange declined for a third straight session on Friday, weighed down by slumping heavyweight shares such as Vinamilk, Vietcombank and BIDV.
The VN-Index dropped 0.22 per cent to end Friday at 1,010.03 points. This was also its fourth falling session this week with a combined loss of 1.2 per cent.
Overall market conditions were negative with 181 shares declining, 137 rising and 105 unchanged.
Blue chips diverged when 13 of the top 30 largest shares by market value and liquidity on the southern bourse gained and 12 advanced. The five others remained flat.
Some gainers supported the market such as PV Gas, Mobile World Investment and Viet Nam Prosperity Bank which increased by more than 1 per cent each. However, the losses of Vinamilk (down 2.3 per cent), Vietcombank (down 1.3 per cent) and the Bank for Investment and Development of Viet Nam (BIDV) (down 1.2 per cent) – three of the seven largest listed firms – weighed on the market.
The market dropped with liquidity at an average level. Delayed US-China trade negotiations partly affected the market in the past week, analysts at BIDV Securities Co wrote in a daily report.
More than 212 million shares worth nearly VND7 trillion (US$300.8 million) were traded on the southern bourse on Friday.
“However, the Ho Chi Minh Stock Exchange will officially launch the three new investment indices – VN Diamond, VNFIN Lead and VNFIN Select – which are expected to create new momentum for the index, solving the problem of foreign ownership limits,” the report said.
The HCM City exchange said it would launch the three new investment tools next Monday and these indices would serve as a basis for fund management companies to operate index-based investment funds (ETFs).
On the Ha Noi Stock Exchange, the HNX-Index also decreased for a second day, down 0.2 per cent to end trading at 106.03 points, with 28 million shares worth VND537 billion ($23 million) exchanged.
“After the previous breakout, the market will possibly enter an accumulation phase in 1,000-1,030 points for different stock sectors to build value and establish a new price level before rebounding,” said Tran Xuan Bach, a stock analyst at Bao Viet Securities Co.
He said due to a lack of supporting information this week, the market might fluctuate with wide divergence among sectors.