After opening the day with a mild recovery, the local market resumed its downtrend on Wednesday as high selling pressure continued to send stocks down. The VN-Index lost 1.15 points, or 0.27%, from the day earlier to close at 418.04, extending its losing streak to the fifth consecutive session.
The market opened in the black and quickly hit the daily high of 422.17 before falling back slightly and fluctuating in a narrow range above Tuesday’s close for the rest of the morning session. In the afternoon, trading saw a sudden drop to the lows where the market closed.
On the southern bourse, volume dropped 13% to 44 million shares while value was almost unchanged compared to the previous session at VND740 billion.
There were 89 stocks advancing while 128 stocks fell, of which 22 stocks went to the ceiling prices and 40 stocks dropped to the floor prices. Blue-chips were broadly weaker although HAG, GAS and HPG made some modest gains.
Sacom Development and Investment Corporation (SAM) was the leader in terms of volume with 1.9 million shares traded while Vingroup Company (VIC) was the leader in terms of value with VND36 billion worth.
Foreigners turned net sellers after several days of net buying while participation levels improved. They accounted for 14.9% and 17% of the market’s buying and selling value respectively.
On the Hanoi market, the HNX-Index dropped 0.41 point, or 0.58%, against the previous day to close at 70.7. Turnover slipped 27% in both volume and value to 35 million shares worth VND325 billion.
Losers slightly outnumbered advancers by 117 to 109. PVX was the most active stock in terms of both volume and value with around four million shares worth VND38 billion.
HCMC Securities Corp. (HSC) said the markets took another tumble with the HNX-Index confirming its breakdown while the VN-Index looked to be heading in the same direction. Observable margin positions continued to drop and now had also fallen below the early June’s lows as well.
The VN-Index has been held up by a handful of heavyweight stocks such as VIC. But with another poor day in the bond market where yields have increased for a 15th consecutive session the stock market has acquired a bearish tinge, HSC commented.
Viet Capital Securities Co., meanwhile, said thin news gave little ammunition to investors to trade with.
“Although proposals have been put on the table to spur growth in recent weeks, actions have yet to materialize, keeping investors on the sidelines. Consensus seems to be that the downtrend may continue and most investors are bracing for a test of 400 points on the VN-Index. The HNX-Index is already at the brink of losing the 70-point mark soon,” the broker predicted.
The Saigon Times Daily
