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VN-Index plunges 4%; only 4 stocks rise
The VN-Index plunged another 4.08 per cent yesterday to close at 430, as most stocks bottomed out on the HCM City Stock Exchange.
Only four codes managed to advance, while 157 lost value – and most of those hit the floor of their regulated trading bands.
Vietcombank (VCB), after its vigorous debut on Tuesday, yesterday edged up less than 1 per cent in value to VND60,500 per share.
Fell to the floor
The other major newcomer to the bourse, Bao Viet Holdings (BVH), fell to the floor after several days of performing well.
Trading volume on the southern market improved, however, increasing 11 per cent over Tuesday’s session to 41.7 million shares on a turnover of VND1.8 trillion (US$101.1 million). Market leaders Sacombank (STB) and Vietcombank (VCB) generated orders for a combined 12.9 million shares, or 31 per cent of total market volume.
On the Ha Noi Stock Exchange, the HNX-Index also plummeted by 4.39 per cent to close at 142.5 points on a trading volume of 20.7 million shares and a total value of VND680.8 billion ($38.2 million). Asia Commercial Bank (ACB) continued to lead the northern market with 5.5 million shares changing hands.
"The market does not yet have any new motivation for increasing in the short term," said Bao Viet Securities Co in its daily report. "Perhaps demand will improve when share prices fall to more attractive levels."
The deputy director of SME Securities Co’s HCM City branch, Hoang Thach Lan, said it was unlikely that the market would slump deeply, having just regained its footing from a long period during which shares were sorely undervalued. The prices of most shares were now at "moderate" levels, he said.
HCM City Securities Co CEO Fiachra Mac Cana affirmed many investors were keeping their powder dry, waiting for a suitable time to join the market. Adjustment over a period of several weeks should be accepted, he said, and the adjustments should help the market increase overall during the rest of the year.
Rock bottom
Bui Duc Thinh, investment analysis director at International Royal Securities Co, said trading volumes "running dry" were a sign that the market would hit rock bottom in the short term.
"Investors should keep calm with the positions they have and avoid trading by sentiment," Thinh said.
Thinh said there was a high possibility that the VN-Index would hold steady in early July in the 420-480 range, before it tested the strong resistance mark of 485. "If basic market conditions are good, the Index could rise to the 550-570 zone this month."
Viet Nam International Securities Co analysts said accelerated buys by foreign investors, along with expected satisfactory second-quarter earnings results, were expected to positively affect the market over the next few days.
Foreign investors accelerated purchases yesterday on the HCM City Exchange, finishing the day as net buyers of 4.8 million shares, with a net value of VND212.5 billion ($11.9 million) and an overall volume of 14.7 million shares. In Ha Noi, overseas clients were responsible for 3.8 million trades, worth a combined VND155.3 billion ($8.7 million).
The unlisted public company market (UPCoM) also continued its downward spiral yesterday, as the UPCoM-Index slid another 6.69 per cent to end at 72.47 points. No stocks managed gains on the fledging market.
But trading volume improved on Tuesday’s dismal session, rising to about 364,500 shares, for a turnover of VND4.9 billion ($275,300).
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