Shares tumble despite foreign support

Update: April, 15/2015 - 09:32
Investors watch trading at a VCB Securities Co's trading floor in Ha Noi. Shares tumbled yesterday on both exchanges due to weak trading. — VNS Photo Truong Vi

HA NOI (VNS) — Strong buys by foreign investors failed to rescue the market from a fall yesterday as weak trading continued to weigh on the two markets throughout the session.

On the HCM Stock Exchange, the benchmark VN-Index edged down 0.16 per cent to close at 558.67 points while the VN30, the tracker of the top 30 shares by market value and liquidity, dropped 0.43 per cent to end at 587.24 points.

The foreign sector yesterday poured over VND70 billion (US$3.2 million) in VN30 blue chips, accounting for 30 per cent of total trading in this basket, but selling pressure by domestic investors still pushed them down.

"Up to 20 stocks in the VN30 basket closed lower. The market slump is unavoidable," analysts at FPT Securities Co wrote in a note.

In total, the foreign sector picked up shares worth nearly VND297 billion (US$13.8 million) in the HCM City's market yesterday, almost tripling the Monday's figure. However, their steady buys failed to ease domestic investors' precaution ahead of the first-quarter earnings reporting.

Liquidity was a little lower compared with the previous session with 69.5 million shares traded, worth a total VND1.324 trillion ($61.3 million).

Two banks claimed the most active position in HCM City, led by BIDV (BID) with 5.1 million shares and Vietinbank (CTG) with 4.3 million shares exchanged by the end of the session.

"Low liquidity was a major concern of the market as it gauged risk appetites of investors. Without a steadily strong cash flow, the local exchange was forecast to stage sideway movements in the coming time," FPT Securities Co's analysts said.

On the Ha Noi Stock Exchange, the HNX-Index lost 0.55 per cent to finish yesterday's session at 82.20 points as the decliners more than doubled the advancers.

The trading volume continued to fall 20 per cent from Monday to reach over 35 million shares while value of trades also dropped 10 per cent to VND466 billion ($21.6 million). F.I.T Investment Co (FIT) remained the most heavily-traded stock here with the trades of 3.8 million shares, closing flat at VND14,000 ($0.65) a share.

Foreign investors also concluded as net buyers here with a total value of VND8.2 billion ($379,600) worth of shares. — VNS