Shares decline on worries over slower cash flow

November 03, 2022 - 16:20
The Vietnamese stock market extended losses in broadbased selling on Thursday as investors shunned equities on worries over trend of cash flow into the market.


Workers of Quảng Ninh Electricity Company under PV Power (POW) install data transmission equipment. POW lost 1 per cent yesterday. — VNA/VNS Photo Ngọc Hà

HÀ NỘI —The Vietnamese stock market extended losses in broad-based selling on Thursday as investors shunned equities on worries over the trend of cash flow into the market.

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 0.33 per cent, to close at 1,019.81 points. The index had lost 1.02 per cent on Wednesday.

More stocks moved to the downside on the southern bourse, of which 166 ticker symbols inched higher, while 274 stocks finished lower.

Liquidity declined compared to the previous session, with nearly 442.9 million shares traded on HoSE, worth nearly VNĐ7.9 trillion (US$402.3 million).

According to the report on global investment flows by SSI Securities Analysis Center (SSI Research), the disbursed capital flow from ETFs into Việt Nam slowed down.

Similar to August, the trend of disbursement from foreign funds such as Fubon, FTSE or domestic funds such as SSIAM VNFINLead was maintained, but at a markedly slower rate. Specifically, the Fubon fund had a net buying value of VNĐ129 billion, down 50 per cent compared to August, FTSE Vietnam had a net value of VNĐ77 billion, down 88 per cent and SSIAM VNFIN Lead had a net value of VNĐ38 billion, down 73 per cent.

The benchmark index was pressured by losses in large-cap stocks, with the 30 biggest stocks tracker VN30-Index posting a decrease 0.13 per cent, to 1,023.80 points. Twelve stocks in the VN30 basket jumped, while 16 stocks slid. And two stocks ended flat.

The worst performers in the VN-30 basket were still pillar stocks in the banking industry. They all decreased sharply with losers including Military Bank (MBB), Tiên Phong Bank (TPB), Vietcombank (VCB), Bank for Investment and Development of Vietnam (BID), VietinBank (CTG), Việt Nam International Commercial JS Bank (VIB) and Saigon-Hanoi Commercial JS Bank (SHB).

Techcombank (TCB) and Sacombank (STB) were the only gainers in the banking group.

Energy stocks also performed poorly with losers such as Việt Nam National Petroleum Group (PLX), PV Power (POW), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD) and Drilling Mud Joint Stock Corporation (PVC).

Foreign investors net sold VNĐ251.2 billion on HOSE, including Hoà Phát Group (HPG) with VNĐ180.13 billion, Kinh Bắc Corporation (KBC) with VNĐ88.23 billion, PetroVietnam Gas JSC (GAS) with VNĐ42.79 billion. Foreign investors net bought VNĐ250 million on the HNX.

On a sector basis, 14 out of 25 sector indices on the stock market lost ground, including banking, wholesale, rubber production, logistics, real estate, and securities. Meanwhile, gainers were insurance, retail, construction and food and beverage.

On the Hà Nội Stock Exchange (HNX), the HNX-Index also finished lower. It lost 0.43 per cent, to 210.74 points.

During the session, VNĐ535 billion worth of shares, equivalent to a trading volume of nearly 37.2 million shares, was traded on the northern market. — VNS