Monday, December 5 2016

VietNamNews

Shares drop for third time

Update: August, 22/2015 - 09:42
An investor follows transactions at VPBank Securities Company in Ha Noi. Low confidence in the market resulted in 22 declining sectors out of 23 sectors, including banks and gas companies. — VNS Photo Truong Vi
HA NOI  (VNS) — Vietnamese shares yesterday extended losses to the third day in a row as investors showed little confidence in the market after receiving negative information.

However, the market recovered partly at the end of the day. The VN Index on the HCM Stock Exchange was down 1.83 per cent to finish at 556.30 points and the HNX Index closed at 77.60 points, a decrease of 1.2 per cent.

Low confidence in the market resulted in 22 declining sectors out of 23 sectors, including banks and gas companies.

The banks were hurt as the State Bank of Viet Nam on Thursday suspended DongA Bank's director general and deputy director general for their faults in the bank's operation.

Tran Huu Phuc, manager of Vietcombank Securities Corporation's Brokerage Department, said that information would not have a long-term serious effect on the banking sector.

At the end of the day, the banking sector fell 2.95 per cent. Vietinbank (CTG) and Sacombank (STB) were the biggest losers with a decrease of 2.6 and 2.35 per cent, respectively.

In addition, domestic energy companies still suffered from decreasing global oil prices, among which the US crude slipped 0.5 per cent to US$40.85.

As a result, gas stocks declined by 4.14 per cent. Petrovietnam Gas Corp (GAS), Petrovietnam Coating JSC (PVB) and Petrovietnam Drilling & Well Service Corp (PVD) lost 5.7, 4.7 and 3.5 per cent, respectively.

The decline of other large-cap shares also dragged the market down. Among them, Bao Viet Holdings (BVH), Ma San Group Corporation (MSN) and Viet Nam Dairy Products JSC (VNM) lost 2.9, 1.2 and 1 per cent.

Le Dac An, head of Tan Viet Securities Corporation's Investment Division, said that investors might have over-reacted to the market information.

He said that market conditions yesterday were a chance for investors to buy shares at low prices.

In fact, high demand for low-value shares helped the market reduce its sharp fall after the VN Index hit 542.84 points – a decrease of 4.2 per cent over Thursday.

Such high demand also boosted the market trading volume on both bourses to more than 251 million shares traded on the market, worth nearly VND3.5 trillion ($156 million) – the highest market trading value in the last nine days.

On the southern bourse, Kinh Bac City Development Corp. (KBC) and FLC Group (FLC) were the two most active stocks. Both traded more than 17 million shares but ended with decreases of 5.9 and 5.5 respectively.

On the northern bourse, Sai Gon-Ha Noi Bank (SHB) topped market trading with more than 13 million shares which lost 1.37 per cent in market value. — VNS

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