Shares drop on selling pressure

Investors watch share movements at SME Securities Co. - VNA/VNS Photo Pham Hau

The benchmark VN-Index on the HCM Stock Exchange started the day by increasing almost 15 points, but ended up in negative territory, edging down by nearly 10.7 points or 0.96 per cent to close at 1,099.67 points.

It had inched down 0.02 per cent to close at 1,110.36 points on Wednesday.

The minor HNX Index on the Ha Noi Stock Exchange dropped 2.18 per cent to end at 123.15 points.

The northern market index dropped 1.15 per cent to end at 125.90 points on Wednesday.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) lost 0.45 per cent to finish at 59.19 points, retreating from a fall of 0.91 per cent in the previous session.

More than 403.4 million shares were traded on the three local exchanges, worth VND9.34 trillion (US$415 million).

Declining stocks outnumbered the gaining ones by 432 to 234, while 140 other stocks ended flat.

Large-cap stocks underperformed, as 20 of the 30 largest stocks by market capitalisation in the VN30 Index suffered, pulling the large-cap index down 0.82 per cent to 1,086.90 points.

Among the worst decliners in the VN30 basket included Bao Viet Holdings (BVH), down 4.3 per cent; Hoa Phat Group Joint Stock Company (HPG), dipping 2.1 per cent; Viet Nam Dairy Products Joint Stock Company (VNM), declining 0.2 per cent; as well as Sai Gon Beer-Alcohol-Beverage Corporation (SAB), decreasing 0.8 per cent.

Banking and energy stocks also underperformed.

Booming stocks in the banking sector, such as the Bank for Investment and Development of Viet Nam (BID), Viet Nam Prosperity Joint Stock Commercial Bank (VPB) and Military Commercial Joint Stock Bank (MBB), were down 1.5 per cent, 2.1 per cent and 3.8 per cent, respectively.

The energy sector was driven down by PetroVietnam Gas Joint Stock Corporation (GAS), PetroVietnam Technical Services Corporation (PVS) and PetroVietnam Drilling Mud Joint Stock Corporation (PVD), down 1.9, 8.3 and 6.9 per cent, respectively.

Many large-cap stocks in the Unlisted Public Company Market (UPCoM) suffered strong selling pressure, including Airports Corporation of Viet Nam (ACV), down 5.5 per cent, Vietnam Airlines JSC (HVN), losing 10.3 per cent, Lien Viet Post Joint Stock Commercial Bank (LBP), dropping 4.2 per cent and Masan Resources Corporation (MSR), decreasing 10 per cent.

According to BIDV Securities JSC (BSC), the market may continue to fluctuate strongly as lower prices will lure investors.

“Investors should limit their participation in short-term trading during this time when the risk is being pushed up to high levels,” BSC said in its daily report.