Concerns about coronavirus impacts markets

01-Feb-2020 Intellasia | VNS | 7:11 AM Print This Post

Shares plunged on both national stock exchanges on Thursday, the first trading session after the Tet (Lunar New Year) holiday, due to volatility on global markets given developments of the coronavirus outbreak in China.

On the Ho Chii Minh Stock Exchange (HOSE), the VN Index slumped 3.22 per cent to 959.58 points by the end of Thursday’s session.

On the Hanoi Stock Exchange, the HNX-Index dropped 2.04 per cent to 104.11 points.

Both stock indices rose on the last trading day on January 22.

Vietnam’s stock market moved in line with Asian stocks which fell on Thursday morning as the death toll from the coronavirus outbreak rose to 170, while the number of infected cases was reported to have hit nearly 8,000 around the world.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 per cent to a seven-week low and has now dropped for six straight sessions. Indexes in Japan and Hong Kong fell 1.7 per cent and 2.6 per cent respectively.

Taiwan’s benchmark index slumped 5.7 per cent.

International experts have warned of a possible recession for the world economy as China the world’s second-largest economy would likely suffer a slowdown in economic growth due to the outbreak.

In HCM City’s market, 27 of the top 30 largest shares by market value and liquidity declined, of which 19 lost more than 1 per cent.

The biggest losers included Bank for Investment and Development (BID) (-5 per cent), brewery Sabeco (SAB) (-6.2 per cent), Vinamilk (VNM) (-3.9%), Vinhomes (VHM) ( 2.2 per cent), PetroVietnam Gas JSC (GAS) (-3.1 per cent), Vietinbank (CTG) (-4.9 per cent) and Techcombank (TCB) (-5.4 per cent).

Two big airlines Vietjet (VJC) on HOSE and Vietnam Airlines (HVN) on the Unlisted Public Company Market (UPCoM) also decreased by 4.4 per cent and 7 per cent, respectively.

A total of 229.2 million shares worth VND4.9 trillion (US$211.9 million) were traded in the two markets.

According to Bao Viet Securities Co (BVSC), the VN Index will possibly continue to face declining pressure and retest the support zone of 945-946 points in the short term.

“However, after the washout session today, the market may experience a more balanced trading session on Friday. The index is expected to make a technical recovery to retest the resistance zone of 970-972 points in upcoming sessions,” BVSC said.

Foreign investors net sold VND184.97 billion on the HOSE, including Vinamilk (VNM) (VND78.75 billion), Masan Group (MSN) (VND42.25 billion) and Vietjet (VJC) (VND39.53 billion). They were net sellers on the HNX with a value of VND5 billion.

https://vietnamnews.vn/economy/591649/concerns-about-coronavirus-impacts-markets.html

 


Category: Stocks, Vietnam

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