As selling pressure kept accelerating on pessimistic investor sentiment, the local market continued its losing streak on Tuesday with over 80 stocks plunging to the floor prices. The VN-Index dropped 4.93 points, or 1.16%, from a day earlier to close at 419.19.
The market opened in the red and fell further to hit the daily low of 417.92 before staging a rebound at the end of the morning session. In the afternoon, the market saw a further drop almost to the lows before it closed just over a point above that.
Liquidity remained low as investors were waiting for second-quarter results. Trading on the Hochiminh Stock Exchange (HOSE) slumped 19.6% in volume and 27.8% in value to 50.5 million shares worth VND745 billion.
Laggards outstripped advancers by six-fold at 207 to 32. Blue-chip BVH extended its fourth consecutive loss by hitting limit-down, erasing 1.1 points from the index.
With 2.1 million shares changing hands, Tan Tao Investment Industry Corporation (ITA) remained the most traded stock on the southern bourse while Sacombank (STB) took the lead in terms of value with VND45.5 billion.
Foreign investors remained net buyers but injected only VND7.3 billion into the HOSE, accounting for 14.1% and 13.1% of the market’s buying and selling value respectively.
On the Hanoi market, the HNX-Index slid 0.69 point, or 0.96%, from the session earlier to close at 71.11. Turnover improved by 12.6% in volume and 5.7% in value to 47.8 million shares worth VND445 billion.
Losers outnumbered winners by four-fold, of which 75 tickers went limit-down. VND was the leader in terms of both volume and value with 3.6 million shares worth VND38 billion traded.
HCMC Securities Corp. (HSC) said the market had turned quite grumpy this week with a noticeable sell-off by retail investors mostly concentrated in high-beta stocks, which suggested that margin positions were falling once again.
“Our hopes for any mini rally are now clearly dashed. In previous sessions, we saw supporting bids at lower levels but this was absent on Wednesday, suggesting a more despondent mood,” it said.
“Of course, some stocks having fallen 10-15% in recent days may now look oversold. However, despite positive macro news on inflation, the sharp drops on overseas markets plus the sustained correction in the bond markets have given equity investors a pause for thought. While a short-term bounce may be expected as soon as tomorrow, the current mood suggests a continuation of the sideways and downtrend.”
The Saigon Times Daily