|Investors at SSI Securities trading floor in Ha Noi. — VNS Photo Doan Tung
HA NOI (VNS) — Vietnamese shares yesterday fell on both local exchanges for a second day as sharp volatility in Chinese stocks unnerved investors.
The benchmark VN Index on the HCM Stock Exchange dropped 0.9 per cent to close at 560.05 points, extending its loss to 2.5 per cent in the past two days. The southern index fell 3.3 per cent last week.
The HNX Index on the Ha Noi Stock Exchange fell 1 per cent to finish at 76.41 points, marking a two-day decline of 2.9 per cent. The northern index lost 4.4 per cent last week.
"Investors are still worried about the drop in China's stock markets and believe the Chinese economy and weaker yuan will not likely rebound soon," said Nguyen Xuan Binh, deputy head of Bao Viet Securities Corporation's Market Analysis.
Investors remain concerned that Chinese stocks will decline again next week despite yesterday's rebound and a stronger yuan for the first time in nine days, Binh said.
Local investors fear that a declining Chinese stock market and yuan will put downward pressure on the Vietnamese dong and hurt their investments in Viet Nam's stocks.
Financial stocks continued to suffer from foreign selling. The banking sector index dropped 1.4 per cent and the brokerage sector index fell 1.9 per cent yesterday.
The biggest decliners in these two sectors included the Bank for Investment and Development of Vietnam (BID), which declined by 2.6 per cent, Vietinbank (CTG), which fell 2.2 per cent, broker Sai Gon Securities Incorporate (SSI), which was down 2.5 per cent, and HCM Securities Corporation (HCM), which lost 3 per cent.
Other big stocks that also declined and pulled the market down included dairy company Vinamilk (VNM), which was down 1.6 per cent, food and beverage producer Masan Group (MSN), which lost 1.3 per cent, and software provider FPT Corporation (FPT), which decreased by 1.5 per cent.
Energy stocks fell despite a 1.9 per cent increase in US benchmark crude West Texas Intermediate (WTI) to $33.91 a barrel yesterday from an eleven-year low. Crude dropped about 8.5 per cent last week.
Declining energy stocks included PetroVietnam Drilling and Well Services Corporation (PVD), which went down 0.4 per cent, and PetroVietnam Mud Drilling Corporation (PVC), which was down 0.7 per cent.
The stock markets traded more than 192.4 million shares, worth VND2.4 trillion ($106 million), a decrease of 15 per cent from Thursday's trading value. — VNS