Selloff sends blue chips tumbling

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

The local stock market corrected today, July 18, as investors flocked to take profits out of blue chips that had made significant rallies in previous sessions.

The VN Index of the Hochiminh Stock Exchange lost 6.25 points, or 0.66 percent, to close at 976.05, with losers outnumbering gainers by 180 to 115. Market turnover tumbled as volume and value shed 18 percent and 12 percent against the previous day at 139.8 million shares worth VND3.6 trillion.

Up to 24 of stocks in the VN30 basket ended the session with a negative note, including Coteccons Construction (CTD), food and beverage firm Masan (MSN), DHG Pharmaceuticals (DHG), real estate firms Vinhomes (VHM) and Novaland (NVL), and VPBank (VPB). The stocks had made strong increases in recent weeks on expectations for good quarterly earnings reports.

Since the beginning of this month, the VN Index has soared more than 15 points, equivalent to 1.7 percent, mostly led by blue chips and large caps stocks. Meanwhile, most of the remaining firms on the market has made flat movements.

Therefore, the selling pressure was understandable because outstanding stocks had rallied to their profitability levels, said

Military Bank Securities Company in its daily report said that selling started increasing on Wednesday and weighed on blue chips and top heavyweights. The worst-performing sectors were insurance-finance, brokerage, healthcare and pharmaceuticals, food and beverage, and construction.

The negative note was that market trade decreased strongly, with cash flow shifting into some speculative and small stocks. If trading value fails to improves, the market may see another falling session tomorrow.

However, foreigners stayed on the buying side despite selling pressure from domestic players. They net bought VND84.3 billion worth of shares on the southern bourse, chiefly shares of fuel retail PLX and lender VCB.

It proved foreign investors were quite upbeat and they would support the market. The VN Index may keep going up to test the new resistance zone between 990 and 1,000 points in the near future, the broker said.

On the Hanoi Stock Exchange, the HNX-Index gained 0.16 point, or 0.15 percent, to close at 106.17. There were 33.2 million shares valued at VND554 billion changing hands, including 3.9 million shares worth VND161 billion traded in block deals.

Petroleum technical service firm PVS turned the volume leader with 6.3 million shares exchanged, falling 1.7 percent at VND23,300. Among its fellow fuel firms, PVB jumped 4.7 percent at VND20,200 and PVC closed at the reference price.


Category: Stocks, Vietnam

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