Shares fall as coronavirus scares investors

04-Feb-2020 Intellasia | VNS | 6:02 AM Print This Post

The market witnessed steep declines Friday because of concerns over the coronavirus outbreak that dampened investor sentiment.

On the Ho Chi Minh Stock Exchange (HOSE), the VN Index lost 2.39 per cent to end at 936.62 points.

The index slumped 3.22 per cent to 959.58 points by the end of Thursday’s session.

After the first two sessions of the year, the VN Index has lost by up to 5.61 per cent, while the whole year of 2019 the index climbed by only 7.67 per cent.

A total of 254 million shares worth VND4.88 trillion (US$210.6 million) were traded on the southern market.

The large-cap VN30-Index dropped 3.1 per cent to close at 848.63 points with 25 of the 30 largest stocks by market capitalisation and trading liquidity falling.

Remarkably on Friday, while aviation stocks dropped to the floor prices, pharmaceutical and medical equipment groups gained ground.

Listed aviation and tourism stocks dropped significantly due to the coronavirus. The leading stocks of aviation groups hit the daily limit decline. Vietjet (VJC) on HOSE dropped 7 per cent to the floor price of VND130,200. Vietnam Airlines (HVN) on the Unlisted Public Company Market (UPCoM) dropped 6.9 per cent to the floor price of VND28,450.

Other large-cap stocks such as dairy firm Vinamilk (VNM), PetroVietnam Fertiliser and Chemicals Coporation (DPM), Bao Viet Holdings (BVH), Refrigeration Electrical Engineering Corporation (REE), IT giant FPT Corporation (FPT), Hoa Phat Group (HPG) and Vincom Retail (VRE) also lost ground.

Petroleum stocks also dropped strongly with PetroVietnam Gas (GAS) falling by 6 per cent, Binh Son Refining and Petrochemical Company (BSR) declining by 6.2 per cent, PVPower (POW) losing by 5.4 per cent, PetroVietnam Technical Services Corporation (PVS) decreasing by 5.8 per cent and PVD falling by 6.7 per cent.

Pharmaceuticals and medical equipment saw positive growth. A series of stocks in this group increased to the ceiling price such as American Vietnamese Biotech INC (AMV), DHG Pharmaceutical Joint Stock Company (DHG), Ha Tay Pharmaceutical Joint Stock Company (DHT), Japan Vietnam Medical Instrument Joint Stock Company (JVC).

Phan Dung Khanh, director of investment consultancy department at Maybank Kim Eng Securities Co Ltd, said Vietnam’s stock market dropped sharply because investors were worried that a pneumonia outbreak, caused by a new strain of the coronavirus, would spread out on a larger scale affecting the financial market.

The World Health Organization on Thursday declared a global emergency as the virus spread to more countries.

The disease first surfaced in Wuhan, China, in December. It has spread to many other countries and territories. China’s National Health Commission has confirmed nearly 9,700 infection cases and 213 deaths by Friday.

On the Hanoi Stock Exchange, the HNX-Index lost 1.68 per cent to end at 102.36 points.

The northern market index dropped 2.04 per cent to 104.11 points on Thursday.

http://bizhub.vn/markets/shares-fall-as-coronavirus-scares-investors_312905.html

 


Category: Stocks, Vietnam

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