Soaring selling force in last minutes causes market to finish lower

Soaring selling force in last minutes causes market to finish lower

The breadth of the southern market was negative, as up to 267 stocks decreased, quadrupling the number of gainers.

A worker collects natural rubber latex at a plantation of Vietnam Rubber Group. Shares of the company dipped over 4.6 per cent on Monday, adding pressure on the market's sentiment. — Photo vrg.vn

The stock market opened the new week on a negative note, as unexpected profit-taking intensified sharply into the close and sent indices dropping. 

On the Hochiminh Stock Exchange (HoSE), the VN-Index fell 18.58 points, down 1 per cent, to 1,843.5 points. The selling pressure accelerated rapidly, with the index at one point plunging by nearly 28 points.

The VN30-Index, tracking the 30 biggest stocks on HoSE, also declined by 11.45 points, or 0.57 per cent, to 1,991.11 points. 

The breadth of the market was negative as up to 267 stocks decreased, quadrupling the number of gainers. Liquidity improved from the previous session, increasing to over VNĐ 22.4 trillion (US$853 million). 

Similarly, the HNX-Index, representing the Hanoi Stock Exchange (HNX), also dropped more than 11 points, or 3.6 per cent, to 296.51 points. 

Vietcombank (VCB) was the market's biggest dragger, erasing over 1.4 points from the VN-Index. 

It was followed by BIDV (BID), Vietnam Rubber Group (GVR), PetroVietnam Refining and Petrochemical Corporation (BSR), Vinpearl (VPL), Techcom Securities (TCX), Gelex Electric (GEE), PV Gas (GAS), VPBank (VPB) and Asia Commercial Joint Stock Bank (ACB).

Losses were capped by gains in some big names, led by Vinhomes (VHM). Shares of the property developer jumped by 1.65 per cent, contributing 2.23 points to the VN-Index. 

A notable mover was PC1 Group (PC1). PC1 hit the maximum daily loss of 7 per cent, with market capitalisation reported at roughly VNĐ8.4 trillion. 

This was PC1's fourth consecutive losing session since July 1. And over the past four sessions, the share price declined by more than 11 per cent.

The negative move came after PC1 disclosed abnormal information relating to a bond lot, identified as PC1H2227002. 

According to the conclusion cited from Việt Nam's State Securities Commission inspectorate, the company used VNĐ90 billion of the VNĐ900 billion mobilised from the bond issuance to repay short-term loans at VietinBank, which was stated as not matching the purpose previously announced.

Although the company was not penalised because the case had passed the statute of limitations, PC1 still had to recall the issued bonds and return the investors' money with accrued interest. The company also reportedly announced a plan to buy back the bond early, with the registration deadline set for August 22.

Meanwhile, foreign investors continued to sell net, offloading nearly VNĐ2.8 trillion on HoSE and over VNĐ25 billion on HNX. 

Bizhub