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VietNamNews

Investor sell-offs send local markets tumbling

Update: November, 13/2013 - 09:11
Staff at the Ha Noi Stock Exchange. Blue chips dragged the HNX30 more than 1 per cent lower to 120.12 points. — VNA/VNS Photo Tuan Anh
HA NOI (VNS)— Shares reversed Monday's gains to tumble on both stock exchanges yesterday as investors sold off penny and mid-cap stocks.

On the HCM City Stock Exchange, the VN-Index slid 0.68 per cent to 497.65 points. Losers overwhelmed gainers by 128-87.

The value of trades jumped by roughly 47 per cent over Monday's session to VND1.47 trillion (US$69.3 million). Trading volume also surged to nearly 122 million shares.

Profit-taking occurred to a series of small stocks. FLC Investment Group (FLC) hit its ceiling price in the morning session but finally closed at 1.9 per cent.

Other construction and real estate stocks, including Tan Tao (ITA), An Duong Thao Dien (HAR), Hoang Quan (HQC) and Licogi 16 (LCG), saw high trading volume between 4-8 million shares. However, many of these codes ultimately retreated.

Two-thirds of the 30 leading shares in terms of capitalisation and liquidity tracked by the VN30 ended in the red.

Notably, financial conglomerate Ocean Group (OGC), PetroVietnam Drilling Services (PVD), Becamex Infrastructure (IJC) and logistics company Gemadept (GMD) each lost 2-5 per cent.

The VN30 dropped almost 0.8 per cent, reaching 555.11 points.

On the Ha Noi Stock Exchange, the HNX-Index declined 0.3 per cent to 63.85 points. Blue chips dragged the HNX30 more than 1 per cent lower to 120.12 points.

Massive sales drove market value up 32.3 per cent to VND456.5 billion ($21.5 million) on a volume of 66.1 million shares.

Although foreign investors were net buyers in Ha Noi by over VND7 billion ($330,100), they could not offset the net selling value of VND47.8 billion ($2.2 million) in HCM City.

Foreign investors mostly unloaded blue chips such as private equity group Masan (MSN) and property developers Vingroup (VIC), Hoang Anh Gia Lai (HAG) and ITA.

Economic information such as the small reduction in fuel prices did not affect the market.

"Investors' cash is hovering around different groups of stocks to seek liquidity," FPT Securities Co analysts wrote in a note.

"However, as the cash focused on small stocks rather than larger ones, it does not support substantial growth," they further said. — VNS


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