Market suffers biggest one-day loss
By Phuong Thao - The Saigon Times Daily
HCMC – The local market extended its losing streak to the fifth consecutive session on Tuesday as bearish sentiment stirred a sell-off. The VN-Index lost a hefty 14.04 points, or 2.99%, against the previous day to close at 455.65, making it the biggest single-day loss since the start of this year.
The market slid in early trade but later ran up and hit the daily high of 467.63 before falling back in two stages and closing in the red at the end of the morning session. In the afternoon session, the index dropped back to the lows and closed just a tad above that level.
Liquidity on the southern bourse also declined with volume and value contracting 12% and 21% to 97.2 million shares and over VND1.5 trillion respectively.
Only 29 stocks advanced and 250 others lost. BVH, MSN, VIC and VCB together erased seven points from the index.
Eximbank (EIB) and Sacom Development and Investment Corporation (SAM) were the most actively traded stocks in terms of volume with 3.4 million shares and 3.3 million shares traded respectively.
Foreigners continued to be heavy net sellers with a total value of VND105 billion, mostly offloading BVH, DPM, PVD and VCB, while injecting VND22 billion in PNJ. They accounted for 10.4% and 16.8% of the market’s buying and selling value respectively.
The Hanoi market declined sharply again, dragging the HNX-Index down 2.03 points, or 2.57%, from the session earlier to close at 76.81. Liquidity fell 15% in volume and 18% in value to 78.2 million shares worth VND806 billion.
HBB led the market in terms of volume with 7.7 million shares traded and PVS was the leader in terms of value with VND63.3 billion. Foreigners divested VND23.2 billion, mostly out of KLS and PVS.
Viet Capital Securities Co. on Tuesday saw a gloomy outlook as both indexes had continuously broken support levels, halting recent bullish market sentiment.
The broker noted that the loss on the southern bourse was intensified by the VN-Index’s largest contributor VCB. Vietcombank (VCB), which just listed all its shares on the exchange, now accounts for roughly 14% of the VN-Index. VCB alone removed 3.2 points from the index on Tuesday.
HCMC Securities Corp. said this movement looks like a short sharp correction typically lasting 5-10 days after which the market could well turn around very quickly. Hence, medium term investors may start going back into the market as soon as today and then gradually buy into weakness over the next few days.