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Selling pressure drags down stocks
Rising pessimism drove shares down on both the stock exchanges yesterday, with local investors rushing to sell off shares amid fears of further decline, as bargain prices attracted foreign buyers.
On the HCM City Stock Exchange, the VN-Index fell over 2 per cent to close yesterday at 574.29 points.
As 27 of the top 30 shares by market capitalisation and liquidity lost value, blue chips again dragged down the market. The VN30 index slid 2 per cent to close at 634.76 points.
In addition, selling pressure on hot stocks increased substantially in the past long rally, including FLG Group (FLC), Tan Tao Investment Industry Corp (ITA), Dream House Investment Corp (DRH), and Becamex Infrastructure Investment Company (IJC). The value of most of these shares reached their floor prices.
ITA was also the most active stock on the southern bourse as14.2 million of its shares were traded at VND9,000 per share, down 4.3 per cent from the previous session.
The total market volume grew 12 per cent as compared to Tuesday, totalling 149.2 million shares and fund certificates, worth nearly VND2.48 trillion (US$117.5 million).
According to analysts from Viet Nam Investment Securities Co, though the market is in a correction phase, but large sell orders noted in the recent sessions, even in blue chips, have raised concerns among many investors.
"However, falling prices of many stable shares, which have good fundamentals, could lure investors and help alleviate the downtrend pressure on the market," according to a research note by the analysts.
"In our opinion, selling pressure will be high on hot stocks rather than blue chips, and investors are recommended to restructure their portfolios," they emphasised.
On the Ha Noi Stock Exchange, over 50 per cent of the codes closed in the red, and the HNX-Index declined another 2.04 per cent to end at 82.62 points.
The HNX30 also dropped 3.63 per cent to close at 167.35 points.
The total market value differed slightly from Tuesday, with 95 million shares worth over VND1 trillion (US$47.4 million).
PetroVietnam Construction (PVX) was the most traded stock due to strong selling pressure, as its 13.4 million shares changed hands at VND5,400 per share, down 8.5 per cent from the previous session.
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