Trade on southern bourse turns dreary

15-Jan-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

The local stock market saw dull trading activities today, January 13 due to weak cash flow.

The decline of bluechip stocks, particularly those in the banking sector after two strongly winning sessions, coupled with low liquidity caused the VN Index of the Hochiminh Stock Exchange to struggle.

With 123 gainers and 205 losers, the benchmark index fell 2.7 points, or 0.28%, against last Friday to close at 965.84. Trade volume and value respectively dipped over 33 percent and 44%, with 147.15 million shares worth VND2.7 trillion changing hands.

Most of bank stocks lost ground, with BID dipping 2.3%, CTG declining 1.5 percent and VPB falling 2.1%.

Aside from sligh falls of some bluechips such as gas firm GAS, insurer BVH, and retailer VRE, the southern market’s loss was also attributed to largecap VNM, which wrapped up the first session of the week down 1.3 percent to the intraday low at VND117,400.

Notably, construction firm ROS plummeted for the fourth straight session, ending at the lowest level since its debut on the HCM City market. On September 1, 2016, ROS was first listed at VND12,600, but 14 months later, on November 2, 2017, it was traded at the record high of VND187,500.

However, ROS then encountered a dramatic plunge when closing today’s session at VND11,300.

Apart from ROS, other stocks in the FLC family suffered steep declines as well, with HAI and AMD both plunging over 6%.

With such drags, the continued growth momentum of housing developer VHM, the third-largest stock by market capitalisation in the local market, could not help the index bounce back. VHM added 2.1%, and other largecaps VIC, SAB, MSN rose slightly.

The VN Index is expected to come under pressure in the resistance range of 969-972 points in the short term. The market could move downward to the supporting range of 960-963 points before bouncing back in the next session, said Tran Xuan Bach from Bao Viet Securities Company.

On the Hanoi market, the HNX-Index was volatile in the afternoon but finally managed to close in positive territory, inching up 0.08 percent to 102.3 points. Lenders ACB and SHB were behind the northern bourse’s recovery.


Category: Stocks, Vietnam

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