Economy
Stock market continues to consolidate amid cautious sentiment
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| Investors register trade at ACB Securities trading floor. Both stock indices declined for a third day yesterday on heavy foreign sells. — VNS Photo Việt Thanh |
Viet Nam News
HÀ NỘI – Shares sank for a third day on the two national stock exchanges yesterday as foreign investors continued to offload local shares, raising concerns about a capital flight from the market.
The benchmark VN-Index, the measure of 317 stocks on the HCM Stock Exchange, decreased 1.6 per cent to close at 665.3 points. It lost a cumulative 2.7 per cent in the last three sessions.
On the Hà Nội Stock Exchange, the HNX-Index tracking 374 stocks dipped 1.1 per cent to 80.1 points. The Index lost 1.6 per cent in the last three trades.
Market breadth was negative with 294 of total 691 stocks down and only 123 advancing.
Large-cap stocks were the main drag as the top 10 lost value. Of the top 30 largest shares by market capitalisation and liquidity, only two advanced while 25 declined.
The biggest listed stock Vinamilk (VNM) was down 4 per cent to end at VNĐ129,200 (US$5.74), pulled down by heavy foreign sells. Vinamilk topped the foreigners’ most-sold list yesterday with a net value of nearly VNĐ230 billion, lifting the seven-day net sell value to VNĐ893.5 billion.
Unexpected selling of Vinamilk by foreign investors affected domestic investor psychology and rattled the market, analysts at the brokerage department of Vietstock Finance wrote in a daily report.
Foreign traders extended their sells on the HCM Stock Exchange to eight days in a row with a total value of over VNĐ1.4 trillion. They focused on offloading large-cap shares such as Vinamilk, VinGroup (VIC), Masan Group (MSN), Bao Viet Holdings (BVH), Hòa Phát Group (HPG) and Saigon Securities Inc (SSI).
Masan Group plunged 5.9 per cent and Bao Viet Holdings declined 4 per cent.
The foreign sector was also a net seller in the Hà Nội market for a value of VNĐ16.4 billion and a combined net sell of VNĐ10 billion last week.
“Short-term risks can return if there is no support factors perking up demand this week,” analysts at FPT Securities Co wrote in a note.
Liquidity increased with over 171 million shares worth a combined VNĐ3.3 trillion ($146.7 million) traded in the two markets, up 12.3 per cent in volume and 22.2 per cent in value compared to the daily average of last week. – VNS
