Stocks decline for third session

An investor watches trading at a Saigon Securities Inc trading floor in Ha Noi. - VNS Photo Doan Tung

The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange each dropped 0.4 per cent to finish at 557.87 points and 76.10 points, respectively.

The southern index has fallen 2.9 per cent and the northern index has lost 3.3 per cent over the last three sessions.

Investors fears were heightened after Chinese stocks slumped again yesterday, with China's Shanghai and Shenzhen stock markets dropping 5.3 per cent and 6.6 per cent, respectively. Shenzhen's market has fallen 18 per cent since the end of last year.

Both local and foreign investors in Viet Nam sought to sell stocks on expectations that Chinese stocks will likely extend losses this week, further undermining investor confidence, Sai Gon - Ha Noi Securities Corporation (SHS) wrote in a report.

Large-cap stocks led decliners, with dairy company Vinamilk (VNM) down 0.8 per cent and food and beverage producer Masan Group (MSN) slipping 0.7 per cent.

Meanwhile, Viet Nam's central bank yesterday slightly raised the reference point for its exchange rate trading band by 2 dong to VND21,911 a dollar.

Expectations that the central bank will slowly allow the Vietnamese dong to depreciate this year hurt the insurance sector, whose index lost 2 per cent, led by Bao Viet Holdings (BVH), which fell 2.9 per cent.

The banking sector index lost 0.3 per cent, led by Vietcombank (VCB), which was down 0.7 per cent and Sacombank (STB), which dropped 2.4 per cent.

Local energy stocks fell further after US benchmark crude West Texas Intermediate (WTI) set a fresh 12-year low yesterday. dropping 2.1 per cent to trade at US$32.48 a barrel.

Energy stocks that suffered from a lower crude price included PetroVietnam Drilling and Well Services Corporation (PVD), which declined by 0.4 per cent, and PetroVietnam Mud Drilling Corporation (PVC), which slumped by 5.5 per cent.

Both local markets traded nearly 138 million shares worth VND1.84 trillion ($82 million), a decrease of nearly one-fifth from last week's daily average trading value.