Shares nosedive on massive selling

September 20, 2022 - 07:03
Vietnamese shares plunged on Monday as panic selling flooded the market, following the sharp fall of large-cap stocks.
A gas supply system of PV Gas Cà Mau under PetroVietnam Gas JSC (GAS). GAS lost 2.7 per cent on Monday. VNA/VNS Photo Huy Hùng

HÀ NỘI - Vietnamese shares plunged on Monday as panic selling flooded the market, following the sharp fall of large-cap stocks.

On the Hồ Chí Minh Stock Exchange (HoSE), the market benchmark VN-Index fell 2.32 per cent, to 1,205.43 points.

The southern market index had lost 1.18 per cent last week, marking its third straight weekly decline.

The market's breadth was negative with 399 stocks declining while only 64 stocks rose.

The market liquidity was high as over VNĐ16.7 trillion (US$705.5 million) was poured into the southern bourse, equivalent to a trading volume of nearly 702 million shares.

The VN30-Index, tracking the 30 biggest stocks in market capitalisation on HoSE, dropped 1.83 per cent to 1,229.88 points.

There were only two advancers in the VN-30 basket. FPT Corporation (FPT) rose 0.7 per cent, Vingroup (VIC) gained 0.6 per cent.

In the opposite direction, losers included Bảo Việt Holdings (BVH), down 5.2 per cent, Tiên Phong Bank (TPB) losing 4.9 per cent, Sacombank (STB) declining 3.8 per cent and Military Bank (MBB) down 3.7 per cent, Hòa Phát Group (HPG) dropping 1.5 per cent, Bank for Investment and Development of Việt Nam (BID) losing 3.7 per cent, Phát Đạt Real Estate (PDR) falling 4.7 per cent, PVPower (POW) declining 5.3 per cent, and Vincom Retail (VRE) dropping 2.5 per cent.

Banking stocks fell and put great pressure on the overall market, with losers including Bank for Investment and Development of Vietnam (BID), Vietcombank (VCB), Sài Gòn Thương Tín Commercial Joint Stock Bank (STB), Sài Gòn-Hà Nội Bank (SHB), Asia Commercial Bank (ACB), Military Bank (MBB), VPBank (VPB), Techcombank (TCB), Tiên Phong Bank (TPB) and Liên Việt Post Bank (LPB).

Energy stocks also lost ground with losers such as Việt Nam National Petroleum Group (PLX), PVPower (POW), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD), Drilling Mud Joint Stock Corporation (PVC) and PetroVietnam Gas JSC (GAS).

"Although there were few times of support at 1,230 points, the cash flow signal did not improve, causing VN-Index to lose this support area and 'slope down'," said Việt Dragon Securities Co.

"Market’s drop was temporarily restrained in the end, showing the lower shadow, when the VN-Index retreated to the support area of 1,190 – 1,200 points.

"Currently, this level may still have a supportive effect and help the market recover technically, with the resistance zone of 1,220 – 1,230 points, to re-test the balance of supply and demand.

"However, it’s worth noting that the market's overall trend is still weak and there is no reliable support signal. Therefore, investors still need to be cautious and observe supportive money flow signals.

"In the meantime, it’s still advisable to take advantage of the recovery span to continue restructuring the portfolio in the direction of minimising risks."

Meanwhile, on the Hà Nội Stock Exchange (HNX), the HNX-Index lost 3.16 per cent to close at 264.25 points. VNS