Vietnamese stocks stay in red as gas shares tumble following oil’s free fall

The benchmark VN-Index of Ho Chi Minh Stock Exchange (HoSE) on Tuesday lost more than 16 points due to the loss of many oil and gas stocks.

Selling pressure continues to weigh on the stocks of local oil and gas firms, making a series of stocks of this group fell to the floor, in which GAS saw biggest drop (VND5,500 per share), followed by PVD (VND4,500 per share), PXS, PVT and PVC (VND200-1800 per share).

The other groups, such as real estate, fisheries, food, followed the downward trend.

The support level of 560 points was penetrated, as investors lose their sentiment due to intense selling pressure, making the index of HoSE suffer the most dramatic plunge after the loss it suffered in early May this year when China placed the Haiyang Shiyou 981 oilrig in the territorial waters of Vietnam.

As of the end of Tuesday’s session, the VN-Index lost 16.37 points (2.86 percent) to 555.31 points, the 2nd highest loss in the last 6 months.

In addition, among stocks in the VN30 index comprising the 30 strongest stocks in the southern bourse, following the oil and gas stocks hitting the floor price, other shares leading the market, such as BVH, HAG, REE, VIC, VNM are also in the red.

The Hanoi Stock Exchange (HNX) was also strongly affected by world oil price shocks which hit the lowest in 5 years, making oil and gas stocks slip into the red for the second consecutive day this week.

By the end of Tuesday’s trading session, the HNX-Index lost 3.32 points to 83.85 points.

According to experts, the impact of the world oil price’s free fall was profound on both the world and Vietnam’s stock markets. Therefore, a short-term downward trend in the two indices will be maintained.

The most likely scenario is that the market will test the 560-565 price range of VN-Index as investor sentiment has turned negative with a dominating selling pressure.