Bank stocks drag VN Index down

20-Nov-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

The local stock market opened the week down today, November 18, as most bank stocks, the key drivers in the previous uptrend, declined steeply due to heavy selloffs.

The VN Index of the Hochiminh Stock Exchange tumbled and almost hit the strong psychological level of 1,000 points, dipping 7.12 points, or 0.7%, compared with last Friday to close at 1,002.91. Market trade slid 13.2 percent in volume and 18.4 percent in value to over 184.3 million shares worth nearly VND4.2 trillion.

Among bank stocks, VCB was the biggest drag as it lost 2.3 percent at VND87,600. TCB also closed at the intraday low of VND24,450, down 1.8 percent against the previous session, while BID decreased 1.7 percent at VND41,300.

Other large caps performed poorly, in which dairy firm VNM fell 1.8 percent at VND120,800. VNM was also among the top losers during four falling sessions last week, dropping a combined 4.8%.

Construction firm ROS again led the market for liquidity with 29.1 million shares exchanged, adding 1.2 percent at VND25,200. Meanwhile, property group FLC plunged 3.1 percent at VND4,030 on matching volume of over 13.3 million shares.

According to VNDirect Securities Corporation, the VN Index will fluctuate between 1,010 and 1,050 points in the rest of this year.

With a lack of supportive information, the stock market may not witness a strong uptrend like from August 2017 to April 2018, during which the VN Index reached its all-time peak of 1,200 points. From now until the end of this year, there will be no attractive initial public offerings, while loosened foreign ownership limits or a new securities law were unlikely to happen in the near future.

During the period, the main drivers of the market, instead, will likely come from banking, real estate and retail sectors.

The market is entering a short-term correction. The mixture of good and bad news from the world market will trigger cautious sentiment in the local market, the enterprise said.

Bao Viet Securities Company said the VN Index is testing the support zone from 1,000 to1,008 points, where a recovery is expected. However, after the previous breakout, the market could enter an accumulation phase from 1,000 to 1,030 points for sectors to establish a new price level before rebounding.

November futures contracts will mature by mid-week, therefore, VN30 blue chips are expected to go through a considerable fluctuation toward the weekend, it said.

On the Hanoi Stock Exchange, the HNX-Index lost 0.88 point, or 0.83%, to close at 105.15, as lenders also decreased.

ACB was the top laggard on the northern bourse as it declined 1.2 percent at VND24,100. SHB, meanwhile, dipped 1.5 percent at VND6,500.

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Category: Stocks, Vietnam

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