Tuesday, October 25 2016


Indices dive on heavy sell-offs

Update: May, 19/2015 - 09:11
Investors follow transactions at the HCM Stock Exchange. — VNA/VNS Photo Hoang Hai

HA NOI  (VNS) — Shares continued to plunge yesterday despite net buys by foreign investors.

On the HCM Stock Exchange, the VN-Index dived 1.58 per cent to close the session at 528.95 points as the decliners overwhelmed the advancers by 199-37. Other 67 stocks ended flat.

Selling pressure hit most shares, particularly in speculative stocks, including Ocean Group (OGC), HAI Agrochem Co (HAI), Quang Nam Rubber Investment Co (VHG), Tan Tao Investment Industry Corp (ITA) and Hoang Quan Consulting Trading Service Real Estate Corp (HQC). These shares fell between 3-6 per cent with each seeing 3-4 million shares exchanged.

Blue chips were also sold off as large caps like PV Gas (GAS), VinGroup (VIC), Hoa Phat Group (HPG), Bao Viet Holdings (BVH), Vietinbank (CTG), Eximbank (EIB) and Phu My Fertiliser all closed lower.

The VN30 which tracks the top 30 shares by market value and liquidity was down 1.6 per cent to end at 552.90 points.

Low valuation also attracted bargain investors, pushing up liquidity.

Both market volume and liquidity climbed 40 per cent above Friday's levels, totalling 105.4 million shares worth almost VND1.553 trillion (US$71.6 million).

FLC Group (FLC) concluded the session as the most active code with whopping trades of 16.7 million shares. However, its price slumped 3.3 per cent to finish at VND9,100 a share.

On the Ha Noi Stock Exchange, the HNX-Index dropped by a more substantial 2.17 per cent to end the session at 76.51 points.

The market condition was also negative there as the number of losers was almost four-fold of gainers.

Liquidity was little changed here, however, as just over 42 million shares worth VND422.3 billion ($19.5 million) were traded by the end of the afternoon session.

Speculative KLF Joint Venture Global Investment Co (KLF) remained the most active code with more than 5.8 million shares traded, plummeting 5.9 per cent to settle at VND6,400 a share.

According to most analysts, heavy sell-offs from the opening time dampened investors' enthusiasm while the market was also weighed down by a steep fall in blue chips.

This pessimistic development moderated the positive impact of foreign net buys.

Foreign investors returned as net buyers in both local markets yesterday after a two-week net selling streak. However, their total net buys remained modest at just VND51 billion ($2.4 million) worth of shares in the two exchanges. — VNS

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