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VietNamNews

Shares continue their downward spiral

Update: April, 02/2015 - 08:53
The HCM City's market condition was negative as losers outweighed gainers by 198-38, while 72 ended flat. — Photo doanhnhansaigon
HA NOI (VNS)  — The VN-Index saw its biggest loss in three months, hitting a 2015 low at 538.91 points yesterday, a 2.22 per cent drop from Tuesday as investors increased selling for fear of a further decline.

The HCM City's market condition was negative as losers outweighed gainers by 198-38, while 72 ended flat.

Blue chips led the downturn, particularly in oil and gas shares.

PV Gas (GAS), the biggest stock in terms of market value, dived six per cent. PetroVietnam Drilling and Wells Service Corp (PVD) plunged by more than four per cent.

Other oil stocks - PVC Petro Capital & Infrastructure Investment (PTL), IDICO Petroleum Trading Construction Investment (PXL) and Petroleum Equipment Assembly & Metal Structure (PXS) - lost between 4-6 per cent each.

Bank shares, which were previously building momentum in the market, lost their shine as large-cap stocks like Military Bank (MBB), Bank for Investment and Development of Viet Nam (BID), Vietinbank (CTG) and Eximbank (EIB) plunged 1.7-3 per cent.

The VN30, which tracks the top 30 shares by market value and liquidity, was down 1.81 per cent to close at 569.48 points.

Many analysts reckoned that yesterday's fall was the result of a powerful short-selling programme aimed at pushing the market down further, thereby creating pressure for investors and securities companies to sell stocks pledged as collateral (margin call) at cheap prices.

Liquidity improved yesterday as both market volume and value climbed 50 per cent over Tuesday's levels, totaling 129 million shares worth VND1.982 trillion (US$92.6 million).

FLC Group (FLC) became the most active stock with a whopping number of 24.4 million shares traded, but its prices plummeted 6.25 per cent to end at VND10,500 a share.

On the Ha Noi Stock Exchange, investors' pessimism dominated the market, pulling the HNX-Index down 2.19 per cent to end the session at 80.47 points.

Decliners outnumbered advancers by 156-42 with 167 closing unchanged.

Liquidity also went up in Ha Noi with 42.7 million shares exchanged, worth VND483.5 billion ($22.6 million), up 10 per cent over the previous session.

KLF Joint Venture Global Investment Co (KLF) continued to be the most active code with 8.7 million shares traded but declined by 3.23 per cent to settle at VND9,000 a share.

Foreign investors increased their buys yesterday on both exchanges but their moves had little impact on the market. They were responsible for a combined net buy of VND173.2 billion ($8.1 million) worth of shares in the two markets. — VNS

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