VN-Index plunges to three-month low
By Phuong Thao - The Saigon Times Daily
HCMC – Despite supporting factors including the VND29 trillion bailout package for enterprises, the rock-bottom consumer price index (CPI) in May, and the oil price decline, the local market tumbled for the third straight session on Thursday as a deep correction in recent days really let investors down.
The VN-Index fell to a three-month low, losing 9.83 points, or 2.25%, against the previous session to close at 426.92.
The market opened lower and then moved higher before reversing direction and dropping back in several stages to end the morning session on a weak note. In the afternoon, the market traded in a narrow range before closing just off the lows.
Trading on the southern exchange dropped 12% in volume and 15% in value to 58 million shares worth VND949 billion amid waning demand and strong selling pressure.
Only 42 stocks advanced while 224 others lost ground, with 13 stocks hitting the ceiling prices and 121 others dropping to the floor prices.
Foreign activity increased although this was mostly due to more selling pressure in some heavyweight issues. The investors accounted for 15.9% and 17.5% of the market’s buying and selling value respectively.
Saigon Securities Inc. (SSI) was again the leading ticker in terms of volume and value with 1.94 million shares worth VND40 billion traded, followed by Eximbank (EIB) and Sacom Development and Investment Corp. (SAM) with 1.9 million and 1.5 million shares changing hands respectively.
HCMC Securities Corp. said there is a great deal of uncertainty to be read into recent stock price movements. The market looks oversold but at the same time, with volumes having declined sharply and margin positions being unwound steadily, it also appears to lack vital energy.
A lot of cash is still on the sidelines and has not been withdrawn altogether, suggesting that investors are still hopeful of another mini run in the near future. So the bulls and bears fight it out on a daily basis at the moment both awaiting for some event that will drive the market decisively one way or another at least for the short term, the broker said.
The Hanoi market managed a late rebound although turnover slipped further to VND502 billion. The HNX-Index advanced by 0.05 point, or 0.07%, against the session earlier and ended the day at 73.66.
Gainers outnumbered losers by 199 to 60, of which 14 stocks went to the ceiling prices and 63 stocks dropped to the floor prices. Foreigners accounted for 2.1% of the buying value and 1.2% of the selling value.