Shares nosedive on massive selling
Shares nosedive on massive selling
Vietnamese shares plunged on Monday as panic selling flooded the market, following the sharp fall of large-cap stocks.
On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index fell 2.32 per cent, to 1,205.43 points.
The southern market index had lost 1.18 per cent last week, marking its third straight weekly decline.
The market's breadth was negative with 399 stocks declining while only 64 stocks rose.
The market liquidity was high as over VND16.7 trillion (US$705.5 million) was poured into the southern bourse, equivalent to a trading volume of nearly 702 million shares.
The VN30-Index, tracking the 30 biggest stocks in market capitalisation on HoSE, dropped 1.83 per cent to 1,229.88 points.
There were only two advancers in the VN-30 basket. FPT Corporation (FPT) rose 0.7 per cent, Vingroup (VIC) gained 0.6 per cent.
In the opposite direction, losers included Bao Viet Holdings (BVH), down 5.2 per cent, Tien Phong Bank (TPB) losing 4.9 per cent, Sacombank (STB) declining 3.8 per cent and Military Bank (MBB) down 3.7 per cent, Hoa Phat Group (HPG) dropping 1.5 per cent, Bank for Investment and Development of Viet Nam (BID) losing 3.7 per cent, Phat Dat Real Estate (PDR) falling 4.7 per cent, PVPower (POW) declining 5.3 per cent, and Vincom Retail (VRE) dropping 2.5 per cent.
Banking stocks fell and put great pressure on the overall market, with losers including Bank for Investment and Development of Vietnam (BID), Vietcombank (VCB), Sai Gon Thuong Tin Commercial Joint Stock Bank (STB), Sai Gon-Ha Noi Bank (SHB), Asia Commercial Bank (ACB), Military Bank (MBB), VPBank (VPB), Techcombank (TCB), Tien Phong Bank (TPB) and Lien Viet Post Bank (LPB).
Energy stocks also lost ground with losers such as Viet Nam National Petroleum Group (PLX), PVPower (POW), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD), Drilling Mud Joint Stock Corporation (PVC) and PetroVietnam Gas JSC (GAS).
"Although there were few times of support at 1,230 points, the cash flow signal did not improve, causing VN-Index to lose this support area and 'slope down'," said Viet Dragon Securities Co.
"Market’s drop was temporarily restrained in the end, showing the lower shadow, when the VN-Index retreated to the support area of 1,190 – 1,200 points.
"Currently, this level may still have a supportive effect and help the market recover technically, with the resistance zone of 1,220 – 1,230 points, to re-test the balance of supply and demand.
"However, it’s worth noting that the market's overall trend is still weak and there is no reliable support signal. Therefore, investors still need to be cautious and observe supportive money flow signals.
"In the meantime, it’s still advisable to take advantage of the recovery p to continue restructuring the portfolio in the direction of minimising risks."
Meanwhile, on the Ha Noi Stock Exchange (HNX), the HNX-Index lost 3.16 per cent to close at 264.25 points.
