Shares retreated on August 17 on the nation's stock exchanges, reversing Mon-day's unexpected rebound.
On the HCM Stock Exchange, the VN-Index lost 0.27 percent of its value
to close at 463.52. Market volume fell 10 percent from the previous
session to 36.5 million shares, worth only 1 trillion VND (55.2 million
USD).
On the Hanoi Stock Exchange, the HNX-Index
slid by an even more dramatic 2.8 percent to end the session at 136.19
points. Trading volume declined by 15 percent to just over 29 million
shares, worth just 730 billion VND (38 million USD) in total.
Both benchmark indices opened in negative territory as sell orders
increased amid weak demand. The VN-Index dropped below 460 in continuous
order matching before rising back to 463, supported by the recovery of a
number of blue chips at the latter half of the session.
Those shares include Vietcombank (VCB), Sacombank (STB), software
giant FPT (FPT), food giant Masan Group (MSN), PetroVietnam Drilling
(PVD), PetroVietnam Finance (PVF), Vietnam-Italy Steel (VIS), insurer
Bao Viet Holdings (BVH) and Pomina Steel (POM).
STB, the most-active share with 1.5 million changing hands, closed up 0.63 percent to 16,000 VND (0.83 USD) per share.
By contrast, the Hanoi market, dominated by penny stocks and
mid-cap shares, lacked the sustaining influence of a modest revival in
blue chips. Among larger cap shares on the northern market, many
continued to shed value, including Petro-Vietnam Construction (PVX), Kim
Long Securities Co (KLS), PetroVietnam Insurance (PVI) and Sai
Gon-Hanoi Bank (SHB).
PVX was, once again, the
most-active share nationwide, with a volume of 4 million traded. PVX
closed down 0.84 percent to 24,500 VND (1.28 USD) per share.
August 17's market decline was expected by many analysts.
Bao Viet Securities analyst Nguyen Duc Thi said he was wary of any
market uptrend as demand was weak and pressure to sell high.
"The market is likely to fluctuate in the coming sessions, easing off
sell pressures before heading toward a more stable rise," Thi said.
Vietnam Industrial Securities Co analyst Nguyen Thai Son said
increased sell orders during on August 17's session on the HCM City
market was only exploratory.
"Many investors remain cautious over the possibility of a ‘bull-trap' and are hesitating to buy in," Son said.
Foreign investors concluded on August 17 as net buyers on both
exchanges, picking up a net of 2.5 million shares worth a combined 85
billion VND (4.4 million USD)./.
