Stocks reversed a two-session rally to fall during trades on June 19 despite rumours that petrol prices can decline again.
As the global energy market dwindled overnight, domestic petrol dealers said that retail prices can fall further.
"Investor pessimism overshadowed the market as cash flows were too
weak," FPT Securities Co's analysts wrote on the company's website on
June 19. "Poor trading ate away the confidence in the uptrend driven by
the Government's plan to support the economy."
On the HCM
City Stock Exchange, the decline gathered pace in the afternoon session,
driving the VN-Index down over 1 per cent to close at 431.08 points.
Blue chips retreated. Up to 24 of the 30 largest shares by market value
and liquidity sank while only four codes climbed, depressing the VN30
Index down 0.81 per cent to 506.67 points.
Only Khang Dien
House (KDH) sustained its morning rise, settling at the ceiling price
of 16,500 VND (0.79 USD) per share by the end of the session.
Total value of trades tripled that of the morning's session, reaching
over 1.15 trillion VND (54.8 million USD) on a volume of 68.6 million
shares. However, negotiated trades accounted for almost a half, led by
the Military Bank (MBB) whose shares saw trade worth 213 billion VND
(10.1 million USD), accounting for 15 million MBB shares.
On the Hanoi Stock Exchange, the HNX-Index also sank by more than 1
percent, concluding the June 19's session at just 74.08 points.
Market volume and value continued to be modest with only 35.6 million
shares, worth nearly 372 billion VND (17.7 million USD), changing hands.
PetroVietnam Construction (PVX), with over 3.5 million
shares traded, was again the most active stock nationwide, losing 3.7
percent to a close of 10,300 VND (0.49 USD) a share.
Low
inflation and reduced interest rates no longer weighed heavily on the
market. Investors were paying more attention to credit growth, said Dao
Hong Duong, analyst of PetroVietnam Securities Inc.
"Debt reduction influences the market and entices investors," Duong said.
"The market's ups and downs also depend on the world market and moves
by foreign investors," he added, noting that if foreigners continue to
dump shares, the market would likely see another downturn.
Foreign investors turned out to be net buyers on June 19 on both stock
exchanges, picking up a combined net buy of over 25 billion VND (1.2
million USD) worth of shares.-VNA