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Shares tumble for a third day, Vinamilk tops market gains
Shares tumbled for a third day on Tuesday but the decrease narrowed on rising buying power, focusing on food & drink and banking industries.
On the Ho Chi Minh Stock Exchange, the VN-Index edged down 7.9 points, or 0.67 per cent, to close at 1,172.47 points. The southern bourse’s index lost more than 5 per cent in the last three sessions.
The market breadth was negative with only 143 stocks rising (10 hitting the ceiling price), 338 declining (68 falling to the floor price) and 83 closing flat. Out of the top 30 largest shares by market value and liquidity (VN30), 14 gained value and 12 lost.
Shares in the mining and oil industry led the downturn with an average drop of 6.5 per cent, of which PV Gas (GAS) and Petrolimex (POW) were the biggest losers, each dropping more than 4 per cent. Other big losers included stocks in the groups of information communication technology (ICT), seafood, construction, utilities, plastics and households with an average loss of more than 3 per cent each.
On the bright side, Vinamilk (VNM) rose 6.8 per cent, topping the list of 10 shares contributing to the VN-Index most. VNM contributed 2.71 points to the VN-Index’s growth, followed by Vietcombank (VCB), up 2.2 per cent, contributing 2 points; and BIDV (BID) up 2.7 per cent and Vietinbank (CTG) up 2 per cent, each contributing 1.5 per cent to the VN-Index.
Liquidity improved slightly with nearly 695 million shares worth VND15.8 trillion (US$681 million) being traded in HCM City’s market.
Viet Nam's stock market continued to perform negatively in the first two weeks of June, in line with the global financial markets as concerns about inflation increased after the report showed that US inflation in May increased at the fastest rate since 1981, reaching a 40-year peak.
According to PetroVietnam Securities Incorporation (PSI), in the threat of the stagflation – a combination of high inflation, high unemployment and low growth which threatens economic growth in major economies including the US and EU, the regulatory pressure as well as the risks in the financial market are increasing. Being a manufacturing and processing country with the ability to self-manufacture many essential goods, Viet Nam will limit the import of inflation from the world.
“Viet Nam's stock market is likely to continue to experience a general correction following the world market, but it will accumulate and recover after that, with the basic scenario the VN-Index will continue to trade in the range of 1,165 -1,365 points with the price-earning ratio (P/E) respectively from 11.4 to 13.3,” PSI wrote in a recent market report.
On the Ha Noi Stock Exchange, the HNX-Index dropped 1.23 per cent to 264.62 points with 82 million shares worth VND1.6 trillion being traded.
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