Blue chips drag down markets
HA NOI – (VNS)Shares plunged steeper yesterday as investor pessimism drove trading values down significantly.
Meanwhile, Viet Nam's Purchasing Manager's Index (PMI) last month reached a five-month peak, or 49.2 points compared to the level of 47.9 points in August. However, business conditions seemed to continue to deteriorate.
According to HSBC, a PMI above 50 points indicates an improvement in business conditions over the previous period, while anything lower than 50 means a deterioration.
"From a technical perspective, the market is continuing its downward spiral in both the short and medium term," said Hoa Binh Securities Co analyst Nguyen Thi Huong. Market sentiment was quite pessimistic, and sellers were aggressive, she said. "This pessimism is reflected in the low trading volume, and the market will decline further in order to lure buyers back."
Investors should stay alert at this stage, said Huong, adding that a safe ratio of stocks or cash was recommended.
On the HCM City Stock Exchange, the VN-Index lost 1.53 per cent to stand at 386.55 points on a turnover of just VND478.7 billion (US$22.7 million), dropping 30.8 per cent compared to last Friday's session.
The VN30 tracking the top 30 shares on the southern bourse also declined 1.08 per cent to 451.55 points.
Insurer Bao Viet Holdings (BVH), Becamex Infrastructure Development (IJC), property developer Tan Tao (ITA) and financiers Ocean Group (OGC) and PetroVietnam Finance (PVF) dropped to the floor.
Among the top 30 shares, only steelmaker Hoa Phat Group (HPG) hit the ceiling price of VND20,200 (nearly $1) per share.
The HNX-Index on the Ha Noi Stock Exchange also slid 2.16 per cent to finish yesterday at 54.27 points with trading value reaching just VND169 billion ($8 million).
Market conditions were negative with 161 code shedding value, only 61 posting gains and 172 closing flat.
The HNX30 fell 3.3 per cent, reaching only 99.90 points.
Foreign investors were net sellers yesterday in terms of trading value, unloading a combined margin of VND14 billion (666,700) on both stock exchanges. — VNS