Stocks tumble as coronavirus death toll rises

12-Feb-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

The new week of the stock market got off to a poor start today, February 10, as the coronavirus death toll in China soared fast on the weekend.

The Hochiminh Stock Exchange saw 220 stocks falling and 122 others rising. With 21 out of the 25 sectors falling into negative territory, the VN Index shed 10.02 points, or 1.07%, compared to last Friday at 930.73.

Stock trading also dipped sharply with volume dropping 20.7 percent against the previous session at 153.9 million shares and value slumping 32.7 percent at VND2.7 trillion. Block deals contributed VND539 billion to the overall turnover.

Bank stocks were behind the strong fall of the index, with BID closing at the intraday low of VND49,100, down 5 percent versus last Friday. Meanwhile, VCB fell 1.2 percent at VND88,900 and TCB lost 1.4 percent at VND21,850.

On the contrary, many pharmaceutical and healthcare firms advanced thanks to better business prospects despite the coronavirus outbreak. Both TRA and JVC went up to their ceiling prices, while DHG added 3.7 percent at VND101,000.

According to securities firms, the fast spreading virus, which emerged in the Chinese city of Wuhan in late 2019 and had killed more than 900 as of Sunday. Its impact on the global economy is the major concern of investors, traders and market regulators.

Governments have taken measures to bring the outbreak under control and maintain economic growth. However, other Asian markets still fared poorly today following reports on the rising death toll, while the gold price kept surging due to strong demand for the safe haven.

Investor sentiment is much influenced by daily news reports on the virus outbreak as when it peaks is what investors across Asia are most concerned about, Vietnam International Securities said on website.

The recent selloff helped bring stocks to lower price levels and led investors to buy in anticipation of better long-term growth prospects at local companies. However, it is not easy for the VN Index to advance this week as the growth momentum has weakened and the market sentiment could be dampened easily, the securities firm added.

On the Hanoi Stock Exchange, the HNX-Index fell 0.94 point, or 0.91%, at 103.97, with trading value of as low as VND281.7 billion.

Lender SHB was the most actively traded stock on the northern bourse with 10.7 million shares changing hands, though it dipped 4.2 percent to close at the intraday low of VND6,800.


Category: Stocks, Vietnam

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