Shares drop for second day despite strong foreign buys

Khe Bố hydropower plant in Nghệ An Province, developed by Vietnam Power Development (VPD). The company's shares topped the foreign net buys yesterday. — Photo vnpd.com.vn

HÀ NỘI — Strong buys by foreign traders failed to rescue the VN-Index from another fall on Tuesday, with the benchmark giving up  一. 四 七 per cent to close at  一,0 二 三. 一 三 points.

On the Hồ Chí Minh Stock Exchange, the VN-Index lost  一. 三 per cent on Monday.

The market breadth was negative with  三 八 二 stocks declining,  八 九 rising and  一 五 三 closing flat.

Liquidity increased slightly. Nearly  一. 一 billion shares worth VNĐ 一 七. 五 trillion (US$ 七0 五. 六 million) were traded, up  九 per cent in both volume and value over Monday’s figures.

Foreign investors' investment rescued many stocks in the VN 三0 group (which tracks the top  三0 shares by market value and liquidity), helping cushion the VN 三0 Index from a steep  三. 三 per cent in the morning to just  一. 九 五 per cent by the end of the session.

They were responsible for a total net buy value of nearly VNĐ 一. 九 trillion ($ 七 六. 六 million) on the HCM City’s exchange, of which they net bought VNĐ 五 一0 billion in the VN 三0 stocks. Their net buys extended to  二 一 straight sessions in a row.

Vietnam Power Development (VPD) led foreign traders’ buys with a net value of VNĐ 七 八 一 billion, followed by steelmaker Hòa Phát Group (HPG) and Sacombank (STB) with a net value of more than VNĐ 一00 billion each.

Thanks to foreign buys, except for HPG dropping by  五 per cent, VPD gained  五 per cent and STB recovered from a two-day loss to an increase of 0. 二 per cent by the end of the session.

On the bright side, some heavyweight stocks climbed and contributed to the VN-Index such as Vinamilk (VNM), Vietinbank (CTG), Vietnam Airlines (HVN) and Eximbank (EIB) with growth of between  一. 六 per cent and  四. 九 per cent.

“Although there was an upward move, the market continued to fail to overcome the resistance area of  一,0 六 五 points of VN-Index. The cash flow was maintained when the market approached this resistance area, and concurrently selling pressure continued to exert pressure,” said Phương Nguyễn, a stock analyst at Viet Dragon Securities Co.

On the Hà Nội Stock Exchange, the HNX-Index also declined for a second day, losing  二. 二 二 per cent to end at  二0 七. 五 三 points. It decreased by 0. 四 per cent on Monday.

Liquidity increased with  一 三 五 million shares worth nearly VNĐ 一. 八 trillion being traded, up  二 六 per cent in volume and  一 三 per cent in value compared to the previous session. — VNS