|The VN30 dropped 1.27 per cent to stand at 651.21 points.— Photo ndh
HA NOI (VNS) — Strong declines among blue chips yesterday afternoon erased morning gains and dragged down the benchmark VN-Index by 1.07 per cent to close the session at 624.70 points.
The market condition on the HCM Stock Exchange was negative as losers outnumbered gainers by 130-84, while other 92 stocks ended flat. Only two of the top 30 shares by market value and liquidity gained value while 24 plummeted, including heavy-weight stocks such as Vietinbank (CTG), Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), Masan Group (MSN), VinGroup (VIC), and Saigon Securities Inc (SSI) with decreases between 0.6-2.2 per cent.
The VN30 dropped 1.27 per cent to stand at 651.21 points.
According to analysts, the previous rally was mainly driven by the growth of several major blue chips, but it was not been built on a sustainable foundation.
Therefore, they added, a downward correction was essential for the market to accumulate enough valuation to go further.
However, there are views that the ongoing crash on the Chinese stock market and impending interest rate hike by the Fed impacted foreign trades and dampened domestic sentiment.
Foreign investors continued to sell local stocks yesterday in the two markets. They sold a net value of VND113.3 billion (US$5.2 million) in HCM City, a rise of 32 per cent over Tuesday. Their net sell value also nearly tripled the previous session in Ha Noi, reaching VND6.7 billion ($307,300).
Overall liquidity declined substantially. Trading volume was down 26 per cent to more than 114 million shares while the market value fell 33 per cent to reach VND2.16 trillion ($99.1 million).
FLC Group (FLC) remained the most active with 10.8 million shares traded, climbing 2.6 per cent to end at VND8,000 a share.
On the Ha Noi Stock Exchange, the HNX-Index also edged down 0.55 per cent to finish the session at 85.11 points.
Banks such as the Asia Commercial Bank (ACB) and Sai Gon-Ha Noi Bank (SHB) weighed the bourse down while purchasing power also weakened because of growing caution. The market volume yesterday decreased 10 per cent from Tuesday, totalling nearly 46 million shares, while value of trades was 20 per cent lower at VND526.3 billion ($24.1 million).
Speculative KLF Joint Venture Global Investment Co (KLF) was the leading stock in term of volume with nearly seven million shares, rising 1.75 per cent to close at VND5,800 a share.
FLC Joint Venture Global Investment Joint Stock Company (KLF), the most active on the measure with seven million shares traded, rose 1.75 per cent to end at VND5,800. — VNS