Share sell-offs drag down indices

Regardless of the petrol price cuts, shares tumbled on both national stock exchanges on July 29 following sell-offs.

Regardless of the petrol price cuts, shares tumbled on both national stock exchanges on July 29 following sell-offs.

On the Hochiminh Stock Exchange, the VN-Index lost 10.69 points or as much as 1.78 percent to end at 589.45 points, slipping out of the 600-point level set last week.

More than 200 codes lost value on July 29, 31 of which declined to their floor prices, while only 33 codes managed to rise.

Losses from market pillars including Vingroup (VIC), Masan Group (MSN), Vinamilk (VNM) and PetroVietnam Gas Corporation (GAS) further dragged down the VN Index to below 590 points.

Large-cap stocks were deep in the red with only Vietinbank (CTG) managing to close unmoved.

The VN30-Index, tracking the performance of the southern bourse's largest stocks by capitalisation and liquidity, fell 11.66 points or 1.82 percent to end at 630.3 points.

Pha Lai Thermoelectric Company (PPC) lost 6.8 percent to end at its floor price.

Other stocks posting huge losses included Bao Viet Holdings (BVH), FPT Corporation (FPT), PetroVietnam Drilling Corporation (PVD), Hoa Sen Group (HSG) and Hoa Phat Group (HPG).

The market liquidity slightly improved over July 25 with 111.5 million shares changing hands, worth 1.7 trillion VND (80.1 million USD).

Stocks of the property sectors were the most heavily-traded with FLC Group (FLC) topping the list with 11.5 million shares changing hands, followed by Tan Tao Group (ITA) and Hoang Quan Corporation (HQC) with respectively 6.85 million shares and 4.7 million shares traded.

The HNX-Index on the Hanoi Exchange fell 2.14 percent to finish at 77.73 points while the HNXFF-Index, composed of stocks with minimum free float rate of 5 percent, dropped 2.16 percent to 77.55 points with losers overwhelming gainers by 184 to 39.

The trading value on the northern bourse reached 651.6 billion VND (31 million USD) on the exchange with 54.5 million shares.

The HN30-Index, tracking the top stocks, lost 5 points or 3.14 percent to end at 145.09 points.

Foreign investors continued to be net buyers on both bourses but with falling net volume and value over the previous trading session.

They purchased a net 2 million shares, 24 percent lower and a net 41.24 billion VND (19.5 million USD) shares, 26 percent lower.

According to Vietnam Investment Securities July 28 losses interrupted the solid uptrend being witnessed in the last two months.

However, in the short-term, the VN-Index might rebound as investors remained confident with a bottom-fishing capital inflow seen on July 28 which helped maintain the market liquidity at a relatively high level.

According to Tran Thi Hai Yen, stock analyst from Bao Viet Securities, shares showed little reaction to either corporate earnings in the first half of this year or the petrol price cuts on July 28 afternoon, but to supply and demand in the market.-VNA

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