Shares down on global uncertainty

An electronic stock board on Bà Triệu Street in Hà Nội. – VNS Photo Đoàn Tùng

HÀ NỘI – Shares tumbled yesterday on the two exchanges on rising investor caution, caused by uncertainties in global markets.

The benchmark VN-Index, a measure of  三 一 四 stocks on the HCM Stock Exchange dropped 0. 八 per cent to close at  六 七 一. 四 points after increasing 0. 一 per cent on Tuesday.

On the Hà Nội Stock Exchange, the HNX-Index tracking  三 七 九 shares was down  一. 二 per cent to  八 一. 三 points. It had rose 0. 一 per cent the previous day.

Overall market conditions were negative with  二 七 三 of total  六 九 三 stocks declining while  一 三 三 advanced.

Market sentiment weakened as global stocks kept falling amid anxiety of the outcome of the US presidential election among other things.

“Although Việt Nam’s market typically lacks correlation with the world market, a solid trend may leave an effect,” analysts at FPT Securities Co wrote in a note.

Blue chips led the downturn as  二 三 of the top  三0 biggest shares by market capitalisation dropped while only three increased. The biggest losers included insurer Bảo Việt Holding (BVH) and steelmaker Hòa Phát Group (HPG) each down more than  二 per cent. The second largest listed lender Vietcombank (VCB) and real estate giant VinGroup (VIC) both fell over  一 per cent.

Money focused on low-valued stocks as ten of the top  一0 most active stocks on the two exchanges had value of below VNĐ 一0,000 per share.

Realty firms attracted the most attention. FLC Group (FLC), Tân Tạo Investment and Industry (ITA), Hoàng Quân Consulting-Trading-Service Real Estate (HQC), Sacomreal (SCR), Tasco (HUT) and PetroVietnam Construction (PVX) all were among the most heavily-traded stocks.

Liquidity improved with a total of  一 七 五. 二 million shares worth over VNĐ 二. 七 trillion (US$ 一 二 一. 一 million) exchanged in the two markets, up  一 三. 三 per cent in volume and  二 二. 七 per cent in value compared to Tuesday.

According to analysts at BIDV Securities Co, the VN-Index’s retreat to the support level of  六 七0 points showed that the market is no out of a medium-term upswing.

“Increased market risks can make the market adjust to lower support thresholds of around  六 六0 points,” they wrote in a note.

Foreign investors returned as net sellers in HCM City’s market yesterday after three consecutive net buying sessions, offloading shares worth a net value of VNĐ 四 六 billion. They also extended net selling in Hà Nội’s market to three days in a row with net sell value of VNĐ 六 billion. – VNS