Vietnamese stocks slide as lack of information hits large-caps
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Vietnamese shares slid yesterday as large-cap companies faced strong selling amidst a lack of supportive information while investors awaited discussions on the amended securities law. The benchmark VN-Index on the Hồ Chí Minh Stock Exchange fell 0.91 per cent to end at 988.48 points.
The southern market index climbed 0.84 per cent on Monday.
More than 165 million shares were traded on the southern bourse, worth VNĐ4.24 trillion (US$182 million).
Market breadth was negative with 207 declining stocks, while 111 stocks advanced and 45 ended flat.
Fifteen of the 20 sector indices ended Tuesday on a negative note, dragged by real estate, energy and petroleum, rubber and plastics and consumer staples.
Those sector indices lost between 1.1 per cent and 3.1 per cent, data on vietstock.vn showed.
The energy and petroleum sector was the worst-performing one on the stock market.
Petro stocks such as PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD) reversed after oil prices encountered volatility on Tuesday.
GAS shed 1.9 per cent while PVD slipped 3 per cent.
Real estate firms also dragged the market down, with the industry index falling 2 per cent.
Among the worst-performing property developers were Vincom Retail (VRE), Vingroup (VIC) and Hòa Bình Construction Group (HBC).
According to MB Securities Co (MBS), the VN-Index slid as leading stocks moved in different directions and pressured market sentiment.
Foreign selling also caused negative movement for the stock market, which ended at a net VNĐ277.4 billion, MBS said in its daily report.
In addition, gloomy earnings forecasts for 2019 for listed companies weighed on investors’ confidence ahead of the National Assembly Standing Committee meeting on April 10-18, in which the draft on amended Law of Securities will be discussed, MBS noted.
“The stock market is clearly in its instability stage as large-cap stocks are still heavyweights. It is likely the VN-Index will fall whenever large-cap stocks are hit by strong selling,” Thành Công Securities Co (TCSC) said in a note.
In addition, listed firms are experiencing a lack of supportive information, making investors unwilling to buy their stocks and reducing market liquidity, TCSC said.
Therefore, the VN-Index may struggle at the current level of 990 points in the next trading days with focus shifted to companies with positive first quarter earnings, the company said.
On the Ha Noi Stock Exchange, the HNX-Index slid 1.12 per cent to end at 107.71 points.
The northern market index climbed nearly 1 per cent in the first trading day of the week.
Nearly 48 million shares were traded on the northern bourse, worth VNĐ669 billion.
Questions & Answers
Q.What was the overall performance of the Hồ Chí Minh Stock Exchange yesterday?
What was the overall performance of the Hồ Chí Minh Stock Exchange yesterday?
The benchmark VN-Index on the Hồ Chí Minh Stock Exchange fell 0.91 per cent yesterday. It ended the day at 988.48 points, contrasting with a 0.84 per cent climb on Monday.
Q.Which specific sectors were most affected by the decline on Tuesday?
Which specific sectors were most affected by the decline on Tuesday?
Fifteen out of 20 sector indices ended negatively, with real estate, energy and petroleum, rubber and plastics, and consumer staples being particularly hit. The energy and petroleum sector was the worst-performing.
Q.What factors did MBS identify as contributing to the negative market movement?
What factors did MBS identify as contributing to the negative market movement?
MBS stated that the VN-Index slid due to leading stocks moving in different directions and pressuring sentiment. Foreign selling also caused negative movement, alongside gloomy 2019 earnings forecasts for listed companies.
Q.What is expected to be discussed at the upcoming National Assembly Standing Committee meeting?
What is expected to be discussed at the upcoming National Assembly Standing Committee meeting?
The National Assembly Standing Committee meeting, scheduled for April 10-18, will discuss the draft of the amended Law of Securities. This discussion follows concerns about investor confidence regarding listed companies.