Shares de­cline on surg­ing sell­ing pres­sure

Viet Nam News - - MARKETS -

HAØ NOIÄ — Shares plum­meted for the sec­ond ses­sion in a row yes­ter­day as strong sell­ing pres­sure hit many large-caps dur­ing most of the trad­ing ses­sion, which only strength­ened in the fi­nal min­utes.

The bench­mark VN Index on the HCM Stock Ex­change (HOSE) dropped 2.27 per cent to close at 1,030.64 points, ex­pand­ing its loss of 1.76 per cent from Wed­nes­day.

Mean­while, the HNX Index on the Haø Noiä Stock Ex­change (HNX) inched up 0.01 per cent to end at 121.50 points, re­cov­er­ing from its de­cline of 1.75 per cent in the pre­vi­ous ses­sion.

Mar­ket trad­ing liq­uid­ity sig­naled im­prove­ment but still re­mained low with nearly 175 mil­lion shares, worth VNÑ4.9 tril­lion (US$215 mil­lion), traded on the two lo­cal ex­changes.

De­clin­ing stocks dom­i­nated the two bourses, out­num­ber­ing gain­ers by 253 to 199, sig­nalling low in­vestor con­fi­dence.

Across the stock mar­ket, bank­ing, se­cu­ri­ties, real es­tate, con­struc­tion, re­tail and in­sur­ance were the worst-per­form­ing in­dus­tries.

Their in­dices de­clined be­tween 0.9 per cent and 3.7 per cent, ac­cord­ing to vi­et­stock.vn.

Large-cap stocks un­der­per­formed as the VN30 Index lost 2.63 per cent to reach 1,007.09 points, with 23 de­clin­ing stocks against three gain­ers among the 30 largest stocks by mar­ket cap­i­tal­i­sa­tion.

BIDV Se­cu­ri­ties JSC (BSC) said in its daily re­port that the sell­ing pres­sure was con­cen­trated in most of the main stocks, in­clud­ing Masan Group (MSN), prop­erty de­vel­oper Vin­group (VIC), in­surer Baoû Vi­etä

On the pos­i­tive side, cash flowed to the en­ergy sec­tor thanks to a pos­i­tive trad­ing of crude, which also helped slow down the de­clin­ing trend in the mar­ket and sup­port the HNX-Index to close in green.

Hold­ings (BVH), brew­ery Sabeco (SAB) and bud­get car­rier Vi­et­jet (VJC).

The bank­ing sec­tor con­tin­ued to be un­der in­ten­sive in sell­ing, notably VPBank (VPB) was very close to the floor price.

On the pos­i­tive side, cash flowed to the en­ergy sec­tor thanks to a pos­i­tive trad­ing of crude, which also helped slow down the de­clin­ing trend in the mar­ket and sup­port the HNX-Index to close in green.

En­ergy gain­ers in­cluded PetroViet­nam Tech­ni­cal Ser­vices (PVS), up 5.6 per cent, PetroViet­nam Drilling and Well Ser­vices (PVD), climb­ing 4.3 per cent and PetroViet Nam Coat­ing JSC (PVB), soar­ing 5.4 per cent.

Vin­group list­ing

Vin­homes JSC, the real es­tate arm of Vin­group, yes­ter­day listed 2.68 bil­lion shares on the HCM Stock Ex­change.

The ref­er­ence price was VNÑ92,100 per share against its face value of VNÑ10,000, and the share quickly hit the up­per price limit of VNÑ110,500.

How­ever, ac­cord­ing to Baûo Vieät Se­cu­ri­ties Com­pany, this will likely pro­duce a neg­a­tive im­pact on the over­all mar­ket, partly be­cause the rise of VHM yes­ter­day was not in­cluded in the over­all index.

“The con­tin­u­ous slide amid no im­prove­ment of liq­uid­ity in­di­cates cau­tious cash flows. How­ever, the mar­ket may see a re­cov­ery in the next ses­sion when the growth of Vin­homes is in­cluded in the over­all index,” BVSC said in its daily re­port.

VHM’s mar­ket cap­i­tal­i­sa­tion reached ap­prox­i­mately VNÑ300 tril­lion, mak­ing it the sec­ond-largest com­pany by mar­ket cap­i­tal­i­sa­tion in the stock mar­ket af­ter its par­ent com­pany Vin­group, whose mar­ket cap­i­tal­i­sa­tion stood at VNÑ324 tril­lion.

The com­pany has a char­ter cap­i­tal of more than VNÑ26 tril­lion ($1.14 bil­lion), ac­cord­ing to Traàn Anh Ñaøo, deputy di­rec­tor of HOSE.

The list­ing on the stock ex­change is a mile­stone in the de­vel­op­ment of the firm, help­ing en­hance its brand, as well as com­pet­i­tive­ness, trans­parency and man­age­ment qual­ity, Nguyenã Vi­etä Quang, gen­eral di­rec­tor of Vin­group, said.

The firm plans to de­velop real es­tate projects in satel­lite ur­ban cen­tres of Haø Noiä and HCM City, along­side in cities and prov­inces with high de­vel­op­ment po­ten­tial, he said.

Vin­homes JSC is cur­rently de­vel­op­ing prop­erty projects in 40 cities and prov­inces, he said.

As of the end of March, the com­pany had to­tal as­sets of close to VNÑ94.69 tril­lion ($4.15 bil­lion). — VNS

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