VN shares extend two-day drop

Investors follow transactions at VPBank Securities in Ha Noi. Viet Nam authorities should watch closely moves made by China in its economy and currency in order to minimise their negative impact on Viet Nam's foreign exchange rate and stock market. - VNS Photo Truong Vi

The benchmark VN Index on the HCM Stock Exchange dropped 0.8 per cent to close at 569.94 points. The southern index has fallen 1.6 per cent during the last three days.

The VN Index lost 1.3 per cent to finish at 78.43 points. The northern index has declined by 1.9 per cent in two days.

"Investors remained cautious after Chinese stocks fell sharply and shut down on Monday," Sai Gon Ha Noi Securities Corporation (SHS) wrote in a report.

Chinese shares fell 7 per cent on Monday and dropped further yesterday.

Viet Nam authorities should watch closely moves made by China in its economy and currency in order to minimise their negative impact on Viet Nam's foreign exchange rate and stock market, Vu Bang, Chairman of the State Securities Commission, told Vietnam News Agency yesterday.

The reference point for the official inter-bank foreign exchange rate set by the Viet Nam's central bank yesterday was VND21,907 a US dollar, an increase of VND11 from Monday.

The financial industry led the market decline as the banking sector index lost 1.2 per cent, the insurance sector index fell 1.8 per cent and the brokerage sector index dropped 2.7 per cent.

The banking sector was driven down by Vietcombank (VCB), which declined by 1.6 per cent, Vietinbank (CTG), which dropped 1.1 per cent, and Sacombank (STB), which lost 2.4 per cent.

Insurer Bao Viet Holdings (BVH), and brokerage Sai Gon Securities Incorporate (SSI) and HCM Securities Corporation (HCM) pulled their sectors down. BVH lost 1.9 per cent, SSI fell 3.7 per cent and HCM dropped 1.7 per cent.

Oil prices yesterday made gains in global markets. The US benchmark crude West Texas Intermediate (WTI) was up 0.8 per cent to trade at US$37.04 a barrel.

However, local energy stocks suffered as WTI crude price fell 0.8 per cent on Monday. PetroVietnam Gas Corporation (GAS) dropped 0.3 per cent, and PetroVietnam Drilling and Well Services Corporation (PVD) fell 4.9 per cent.

Both local markets traded nearly 148 million shares worth VND2 trillion ($89.2 million), a decrease of 14.2 per cent from Monday.