Shares sink under pressure

22-Nov-2019 Intellasia | VNS | 6:02 AM Print This Post

Shares tumbled on Wednesday after a brief recovery on Tuesday,as selling pushed heavyweight stocks down and weighed on investor sentiment.

On the Ho Chi Minh Stock Exchange, the VN Index retreated ended Wednesday at 1,000.56, a loss of 0.77 per cent from Tuesday’s close.

The VN Index rose by 0.5 per cent on Tuesday.

Only four of the top 30 shares by market value and liquidity on the southern exchange advanced while 25 declined.

Except FLC Faros Construction (ROS) which rose more than 1 per cent, the other three Vietjet (VJC), Ho Chi Minh Development Bank (HDB) and property developer Novaland Investment (NVL) inched up just 0.2-0.6 per cent.

On the negative side, tech giant FPT Corp (FPT) and PV Gas (GAS) fell by over 2 per cent each. Big banks such as Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), VPBank (VPB) and Techcombank (TCB) lost between 0.2 per cent and 1.9 per cent.

Market breadth was negative with 188 shares falling, 130 rising and 103 closing flat.

Liquidity declined with just 210.3 million shares worth VND5.6 trillion (US$240.6 million) traded, down 10 per cent in volume and 12 per cent in value compared to Tuesday.

“The VN Index spent most of the trading time in the red despite a slight increase in the first minutes of the session. Slumps of many blue chips such as GAS, Vingroup, Sabeco, Vinhomes and Vietcombank pushed the index to around 1,000 points,” analysts at BIDV Securities Co wrote in a daily report.

Foreign macro factors also did not support the index as the US-China situation did not have a new breakthrough and the impeachment investigation against US President Donal Trump was an unfavourable factor, they said.

According to Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, the VN Index is facing declining pressure and may test the support zone of 993-1,000 points on Thursday.

“However, the index’s downward momentum is fairly high, therefore, even if recovering, the market will need to accumulate before sending further signals of a rebound,” Bach wrote in the daily report.

On the Hanoi Stock Exchange, the HNX-Index edged down 0.55 per cent to close at 104.91 points. More than 17 million shares worth VND246 billion were traded on the northern bourse.

Foreign investors were net sellers on both exchanges with total value of VND17 billion.


Category: Stocks, Vietnam

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