Market plunges on oil and gas declines

On the HCM Stock Exchange, the VN-Index lost over 7 points or 1.22 per cent to close the session at 571.68 points. - Photo hanoimoi

On the HCM Stock Exchange, the VN-Index lost over 7 points or 1.22 per cent to close the session at 571.68 points. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange slipped 1.64 per cent to end at 87.17 points.

Oil and gas stocks continued their downward spiral despite positive news like the 11th straight reduction in retail petrol prices.

In HCM City, PV Gas (GAS), the biggest stock in term of market share, fell VND5,500 a share or 6.36 per cent to finish the session at VND81,000 (US$3.80).

Blue chip like PetroVietnam Drilling and Wells Service Corp (PVD) dropped to the floor price of VND69,500 a share ($3.26).

Even small- and mid-cap shares like Petroleum Pipeline and Tank Construction (PXT), Petroleum Equipment Assembly & Metal Structure (PXS), IDICO - Petroleum Trading Construction Investment (PXL) and Petroleum Industrial & Civil Construction (PXI) all plummeted around the floor price.

Petrol also slumped in Ha Noi, with PetroVietnam Technical Services Corp (PVS) down 8.11 per cent and PetroVietnam Drilling Mud Co (PVC) down 9.32 per cent.

Liquidity improved over last week. Market value climbed 20 per cent in HCM City, totaling nearly VND2.28 trillion ($107 million) while this figure jumped 40 per cent in the Ha Noi market to VND1.26 trillion ($59.2 million).

According to analysts at FPT Securities Co, the current market condition is not in favor of speculation as declining shares still overwhelmed rising stocks.

"Money flow is shifting to some real estate and banking shares but even these groups saw modest increases that cannot spread to other stocks in the market," they wrote in a note.

Foreign investors also unloaded local shares yesterday, responsible for a combined net sell value of VND11.25 billion ($528,000) on the two exchanges.