VN Index ends three-day rally

November 29, 2018 - 19:00

A comment made by the US Federal Reserve chairman on slower rate hike pace could not buoy Vietnamese shares from weak market sentiment.

Hoa Sen-Phú Mỹ steel factory in the southern province of Bà Rịa Vũng Tàu. Hoa Sen’s stock (code HSG) declined by 5.1 per cent at Hồ Chí Minh Stock Exchange on Thursday. — Photo
Viet Nam News

HÀ NỘI — A comment made by the US Federal Reserve chairman on slower rate hike pace could not buoy Vietnamese shares from weak market sentiment.

The benchmark VN Index on the Hồ Chí Minh Stock Exchange slid towards the end of the day, dropping 0.37 per cent to close Thursday at 926.79 points.

The southern market index had gained total 1.33 per cent in the previous three trading days.

The HNX Index on the Hà Nội Stock Exchange inched up 0.07 per cent to end at 104.17 points.

The northern market index was up 0.88 per cent on Wednesday.

Both market indices opened the day much higher after the Fed chairman in his Wednesday night speech signalled a slower rate hike speed in the future, Sài Gòn-Hà Nội Securities JSC (SHS) said in a note.

The VN Index climbed as much as 0.81 per cent in the early morning session and the HNX Index added as much as 1.07 per cent.

Despite early efforts, Vietnamese shares lost momentum as “money had yet returned to the market, proven by the trading liquidity that was still below the average of the past 20 sessions,” SHS said.

More than 159 million shares were traded on the two local exchanges, worth VNĐ3.35 trillion (US$149 million).

The trading figures were down 17.8 per cent in volume and 15 per cent in value compared to Wednesday.

Foreign investors posted VNĐ105.5 billion in net purchase value, compared to their net sell value of VNĐ67 billion made on Wednesday.

Lower trading liquidity showed little support for the stock market and this indicated investors believed in the market’s short-term downtrend, SHS added.

Part of the weak market sentiment was caused by poor performance of large-cap stocks in the VN30 basket.

The VN30 Index, which tracks the overall performance of the 30 largest stocks by market capitalisation, was down 0.42 per cent to 897.58 points with half of the 30 stocks declining.

Among decliners were steel producers Hoa Sen (HSG) and Hòa Phát (HPG), Phú Nhuận Jewellery JSC (PNJ), and petrol firm Petrolimex (PLX).

Among other non-VN30 large-cap firms, Bank for Investment and Development of Vietnam (BID) lost 1 per cent amidst spreading rumours that its former chairman Trần Bắc Hà and three other bank officials were arrested for investigations into their violations when working at the bank. The information was confirmed later Thursday by the Ministry of Public Security. 

On Friday, the VN Index may continue move between 900 and 930 points with low trading liquidity, SHS forecast. — VNS