Shares decline for a second day

Shares decline for a second day, illustration photo

The benchmark VN-Index on the southern market plunged 2.86 per cent, or over 29 points, to close at 985.91 points, recovering slightly from the intraday low of 976.73 points.

Vietnam’s benchmark index has lost a total of 5.3 per cent after the last two sessions, sinking below the previous bottom of 1,000 points.

On the Hanoi Stock Exchange, the HNX Index dipped 2.46 per cent to end at 116.72 points. The index had lost 1.33 per cent on Monday.

Strong investor selling pressure helped push the market trading liquidity up sharply from the previous session.

More than 251 million shares were traded on the southern bourse, worth VNĐ6.2 trillion (US$269 million).

Tuesday’s trading figures were up 59 per cent in volume and 46 per cent in value compared to Monday.

On the two bourses, losing stocks outnumbered gaining ones by a roughly 4:1 ratio, proving that market trading conditions were quite poor.

Large-cap stocks traded poorly as 28 of the 30 largest stocks, in terms of market capitalisation and trading liquidity in the VN30 Index, declined while only one of them ended higher.

Heavy selling pressure was seen across the board and increased in the last few minutes of the trading session, hitting many blue chips, including the Bank For Investment And Development Of Vietnam (BID), insurer Bảo Việt Holdings (BVH), steel maker Hoa Sen Group (HSG), real estate developer Vingroup Joint Stock Company (VIC) and VNDirect Securities Corporation (VND), all hitting the daily limit decline of 7 per cent.

On the positive side, Vinhomes JSC (VHM), the real estate arm of Vingroup (VIC), unexpectedly matched 20 shares during the morning session and quickly hit the upper price limit of VND118,200 per share. This made VHM the largest company by market capitalisation, at VND317 trillion, exceeding Vingroup (VIC), whose capitalisation is some VND281 trillion.

In addition, Binh Minh Plastics Joint Stock Company (BMP) saw strong purchasing power from Thai company Nawaplastic Industries Co Ltd, helping this stock increase 2.3 per cent on Tuesday, becoming the only gainer in the VN30 basket.

The rise of VHM and BMP helped slow down the downtrend of the market.

According to Bao Viet Securities Company, the surge of selling pressure and continuous net selling value of foreign traders on Tuesday was bad news for the overall market.

“Although the market may witness some technical recovery soon, the most reliable signal showing the end of the market’s downtrend has yet to be seen,” BVSC said in its daily report.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) edged down 1.92 per cent to finish 53.73 points, extending its loss of 2.46 per cent in the previous session.