Lower blue chips depress shares

Falling blue chips dragged shares down on both stock exchanges on April 14, further dampening investor sentiment.

Falling blue chips dragged shares down on both stock exchanges on April 14, further dampening investor sentiment.

On the Hochiminh Stock Exchange, the VN-Index slid for a third consecutive sessions, falling below the 600-point sentimental threshold at 596.11 points as investors continued to sell blue chips on fears that prices would decline further.

"The decline of blue-chips like BVH, GAS, MSN, VIC and VNM weighed on the southern exchange. The past long rally, with most stocks advancing over 50 percent and many more than doubling the value from late 2013, fueled fears that current share values have overshot corporate earnings outlook," analysts of FPT Securities Co commented on the company's website.

With 25 of the top 30 shares by market value and liquidity losing value, the VN30 fell 0.71 percent to end at 661.12 points.

Heavyweight shares such as Bao Viet Holdings (BVH), PV Gas (GAS), Masan Group (MSN), VinGroup (VIC) and Vinamilk (VNM) closed down by 0.5-2 percent.

Falling prices attracted bargain investors, however, with market volume and value rising 20 percent, totaling 128 million shares and fund certificates worth nearly 2.6 trillion VND (123.2 million USD).

Real estate developer FLC Group (FLC) became the most active stock on trades of 8.5 million shares. FLC rallied 1.32 percent to end at 15,300 VND following news on April 11 that the group received investment certificates for two big real estate projects worth a combined 3 trillion VND (142.2 million USD) in central Thanh Hoa province.

The provincial authority approved the group's 800 billion VND (38.1 million USD) housing project and 2.2 trillion VND (104.76 million USD) eco-tourism and recreation project in Sam Son town.

On the Hanoi Stock Exchange, the HNX-Index sank 0.79 percent to close at 86.79 points while the HNX30 also closed 0.5 percent lower at 182.32 points.

Trading was sluggish here with volume down 25 percent to 61 million shares worth 736.2 billion VND (34.9 million USD), more than 20 percent lower than April 11 level.

Hot stocks PetroVietnam Construction (PVX) and Sai Gon-Ha Noi Bank (SHB) were still the most active codes on the northern bourse with over six million of each changing hands. PVX closed flat at 6,200 VND a share while SHB dipped nearly 1 percent to 11,000 VND. Foreign investors concluded on April 14 as net sellers on both exchanges, unloading shares worth a combined 92.5 billion VND (4.4 million USD).-VNA

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