HA NOI (VNS) — Heavy sell-offs on oil and gas shares continued to drag the market down yesterday, with the VN-Index closing at a six-month low.
In HCM City, PV Gas (GAS) and PetroVietnam Drilling and Wells Service Corp (PVD) declined steeply yesterday, with each losing another 7 per cent in value, contributing to a 2.86-per-cent drop in the VN-Index. It closed at 555.31 points.
The entire market felt the large-cap shares' continuing slump, as more than 70 per cent of codes saw losses by the end of the session.
The VN30, which tracks the top 30 shares by market value and liquidity, fell 2.58 per cent to end at 603.85 points.
On the Ha Noi Stock Exchange, the HNX-Index also fell 3.81 per cent to finish the session at 83.85 points, its lowest in the last three months.
Most oil and gas groups plummeted to the floor, including PetroVietnam Technical Services Corp (PVS), PetroVietnam Drilling Mud Co (PVC), PetroVietnam Coating Co (PVB) and PetroVietnam Southern Gas Co (PGS).
"Investor confidence went down because of the enormous loss of oil and gas companies over the past few days at the back of steep price drops in global markets," analysts at FPT Securities Co said yesterday on the company's website.
However, liquidity improved on the two exchanges, driven by bargain hunting.
Market value jumped over 40 per cent in HCM City, totaling nearly VND3.195 trillion (US$150 million), while the value of trades climbed over 20 per cent in Ha Noi, reaching VND1.24 trillion ($58.2 million).
Speculation is being channeled in realty stocks, which have become the most active stocks on both markets in recent sessions. FLC Group (FLC), Tan Tao Investment Industry Corp (ITA), KLF Joint Venture Global Investment Co (KLF) and PetroVietnam Construction Corp (PVX) each saw between 11 and 18 million shares traded per day.
Foreign investors again concluded yesterday as net sellers in the two markets, but their sales were modest with a combined VND8 billion ($376,000) in net sales in both HCM City and Ha Noi. — VNS