Monday, July 22 2019

VietNamNews

Global slumping stocks dampen local shares

Update: July, 08/2019 - 19:51

 

On the Hồ Chí Minh Stock Exchange (HOSE), the VN-Index lost  0.92 per cent to 966.35 points. — Photo ndh.vn

HÀ NỘI — Shares declined on Monday due to negative movements on world markets, hurting investor sentiment.

On the Hồ Chí Minh Stock Exchange (HOSE), the VN-Index fell 0.92 per cent to 966.35 points. The southern market index gained nearly 2.7 per cent last week.

On the Hà Nội Stock Exchange (HNX), the HNX-Index was down 0.54 per cent to end at 103.81 points. The northern market index increased 1 per cent the previous week.

Data showed more than 182 million shares were traded on the two local bourses, worth VNĐ3.8 trillion (US$161 million).

Indices around the world slumped, such as Japan’s Nikkeri 225, China’s Shanghai Composite Index and South Korea’s Kospi, which had a negative impact on local investors’ confidence.

Most sectors lost today. Bank stocks dropped 1.25 per cent, due to Techcombank (TCB) (2.1 per cent), Vietcombank (VCB) (1.8 per cent) and Sài Gòn-Hà Nội Bank (SHB) (1.5 per cent).

Oil and gas fell 0.68 per cent, triggered by the decline of PetroVietnam Gas JSC (GAS), Việt Nam National Petroleum Group (PLX), PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services Corporation (PVS).

Real estate, securities and insurance stocks all decreased today, respectively by 1.55 per cent, 0.52 per cent and 0.11 per cent.

The large-cap stock index VN30 declined sharply, weighing on the market, losing 1.06 per cent to end at 870.92 points.

In the VN30 basket, 22 of the 30 largest stocks by market capitalisation and trading liquidity slumped while only five increased.

According to Bảo Việt Securities Companies (BVSC), the VN-Index will approach 960-965 points in the next session.

Second quarter business result will soon published, triggering foreign investors’ net buying activities. This will support the market in the short term, BVSC said.

“The market has seen positive movements in the short run, therefore, despite a low capital inflow, we expect that the market will change direction to sideways-up shortly,” it said.

Bank stocks are expected to improve, led by Vietcombank (VCB). Oil and gas stocks, including PVS and GAS are also expected to rebound.

Large-cap stocks and other sectors such as industrial zone real estate and information technology can still attract cash flow.

Investors can take advantage of the market’s correction to raise stock exposure to 55-60 per cent, prioritising stock sectors with expectantly positive Q2 business results, the company said. — VNS

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