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Shares fall on world stocks sinking

Update: February, 29/2020 - 07:38

 

 

A workers helps move steel products at a steel pipe factory of Hòa Phát Group (HPG) in Đà Nẵng. HPG was down 2.61 per cent on Friday. — Photo Hoà Phát Group

HÀ NỘI — Shares tumbled on Friday due to the uneasy global market and worries among investors about the wider spread of CO-VID19 virus.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange fell 0.81 per cent to close at 882.19 points.

The VN-Index increased 0.28 per cent to close Thursday at 898.44 points.

Nearly 242 million shares were traded on the southern bourse, worth VNĐ4.8 trillion (US$208.3 million).

On the US market, the S&P 500 fell 4.42 per cent, its largest percentage drop since August 2011, on Thursday.

Hopes the epidemic that started in China would be contained soon and production activity return to normal have been shaken off, as new infections reported around the world skyrocketing.

Four more countries reported their first cases, taking the number of countries and territories outside China with infections to 55, with more than 4,200 cases killing about 70 people.

“VN-Index is expected to retest the strong support zone 865-880 points next week where we expect to see a balance and market’s opportunity to recover in the short term,” said Bảo Việt Securities Co.

“Foreign investors’ strong selling activities and the spread of COVID-19 outbreak will possibly place negative influence on the global and Vietnamese economic growth.

“Amid the spread of COVID-19 epidemic with no signs of control, domestic companies’ business operations and growth expectation will possibly fall under severe influence,” BVSC said.

By the end of the first two months this year, foreign investors were the net sellers on all three exchanges with a total value of more than VNĐ1.17 trillion.

On Friday, real estate, securities, agriculture, logistics, construction, seafood processing, retail, wholesale, mining, insurance, banking, healthcare and pharmaceuticals, rubber and utilities sectors were among the decliners.

Major stocks such as  Vinamilk (VNM), Hòa Phát Group (HPG), Vingroup (VIC), TPBank (TPB), Vinhomes (VHM) and Vietjet (VJC) were among the large-cap decliners hit by strong selling.

Stock exposure should be maintained at 15-25 per cent of the portfolio. Investors with high stock exposure should take advantage of market’s rallies to lower the exposure, according to BVSC.

“Investors with high cash proportion should stay outside the market and look for market’s recovering signals. Investors may consider buying stocks at low proportion at market rallies around support zone 860-880 points,” BVSC said.

Large-cap tracker VN30-Index was down 1.93 per cent to close at 831.97 points, with only one gainer and 29 decliners.

On the Hà Nội Stock Exchange, the HNX-Index increased 0.29 per cent to end Friday at 109.58 points.

The northern market index rose 2.48 per cent to end Thursday at 109.26 points.

More than 67.4 million shares were traded on the northern bourse, worth VNĐ716.9 billion. — VNS  

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