Tuesday, October 17 2017

VietNamNews

Shares plunge on heavy sell-offs

Update: March, 20/2015 - 10:21

Investors watch local stock movements at the Vietcombank Securities Company in Ha Noi yesterday. — VNS Photo Truong Vi

HA NOI (VNS) — Massive selling by both foreign and domestic investors dragged the market down to a five-week low yesterday.

On the HCM Stock Exchange, the VN-Index lost 0.85 per cent to close the session at 573.74 points. Meanwhile, the HNX-Index on the Ha Noi Stock edged down 0.53 per cent to end at 84.60 points.

Most of blue chips in the VN30 basket slumped yesterday, including Masan Group (MSN), Vinamilk (VNM), Bao Viet Holdings (BVH), Vietcombank ((VCT), Vietinbank (CTG) and Sacombank (STB).

The VN30 which tracks the top 30 shares by market value and liquidity on the HCM City market, dropped 0.97 per cent to finish at 601.31 points.

Trading decreased substantially on the two markets. A total of nearly 132.4 million shares worth a combined VND2.05 trillion ($95.8 million) were traded by the end of the session, a decrease of 20 per cent compared with the previous session.

Foreign investors also kept selling. They unloaded shares worth a net value of nearly VND222 billion ($10.4 million) in HCM City, the strongest level since the beginning of the year. They were also responsible for a net sell value of more than VND20 billion ($935,000) in Ha Noi.

According to analysts at VFMVN30 ETF (exchange-traded fund), the probable hike in interest rates by the US Federal Reserve would strongly influence foreign inflows into Vietnam's stock market.

Trading decreased substantially on the two markets yesterday as a total of nearly 132.4 million shares worth a combined VND2.05 trillion ($95.8 million) were traded by the end of the session.

"Global economic movements will create pressure on Viet Nam, especially on foreign inflows in the country. These have reached about $50 million since the beginning of this year, half the amount for same period last year," a representative of VFMVN30 ETF told the fund's annual meeting yesterday in HCM City.

He said the country's economic recovery this year would depend on the improvement in production which will be driven by low interest rates and opportunities from the Trans Pacific Partnership (TPP).

At the same time, he said global economic volatility, including strong US dollar, growth of developed economies and the Fed's interest-rate hike would affect Viet Nam's currency risk, the national debt payment, banks and domestic businesses. — VNS



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