Shares sink over COVID-19 pandemic fears
Shares sink over COVID-19 pandemic fears
Shares turned negative during the afternoon trading session on Monday as a series of large-cap stocks suffered from strong selling pressure stemming from anxiety over the COVID-19 pandemic.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost 2 per cent to end the session at 1,035.51 points.
More than 634.3 million shares were traded on the southern bourse, worth VND13.7 trillion (US$592.9 million).
“After a strong recovery from the previous session, the VN-Index returned to decline today due to the development of the COVID-19 pandemic,” said BIDV Securities Co.
“Liquidity declined, market amplitude widened and market breadth was negative, indicating a strong net selling trend.
“The movement of the VN-Index is likely to depend on the spread of COVID-19 in the coming period. If the disease is successfully controlled, the market can retest the 1,100 point area. If not, the VN-Index is likely to return to the threshold of 1,000 points,” the company said.
Foreign investors net bought VND180.5 billion on HOSE, including Hoa Phat Group (HPG) with VND87.5 billion, Vinamilk (VNM) with VND87.4 billion and Vincom Retail (VRE) with VND80.5 billion. Foreigners were net buyers on the HNX with the value of VND7.21 billion.
Bao Viet Securities Co said that after two weeks of declining, the market would recover this week.
“The VN-Index might head to resistance territory of 1,085 - 1,100 points. However, the securities firm warns of strong fluctuations in some sessions before continuing to recover in the short-term,” it said.
The large-cap tracker VN30-Index was down 1.76 per cent to 1,029.86 points.
Twenty-six of the 30 large-cap stocks in the VN30 basket decreased while four increased.
A number of blue-chips suffered such as Bao Viet Holdings (BVH), PetroVietnam Gas JSC (GAS), Hoa Phat Group (HPG), Masan Group (MSN), Vingroup (VIC), Phu Nhuan Jewelry (PNJ), Vincom Retail (VRE), Vinhomes (VHM), Mobile World Group (MWG), Vietcombank (VCB), Vinamilk (VNM), Sabeco (SAB).
The banking group also performed poorly including Asia Commercial Bank (ACB), Military Bank (MBB), VPBank (VPB), HDBank (HDB) and Techcombank (TCB).
Real estate and construction stocks were under pressure with decliners including the Cotec Construction Joint Stock Company (CTD), Sao Mai Group (ASM), Dat Xanh Group (DXG), Fecon Corporation (FCN), Hoa Binh Construction (HBC), Kinh Bac Urban Development Joint Stock Co (KBC) and LDG Investment JSC (LDG).
On the Ha Noi Stock Exchange, the HNX-Index fell 2.51 per cent to 208.85 points.
More than 115.8 million shares were traded on the northern market, worth VND1.7 trillion.
