The benchmark VN Index drops 0.64 per cent on July 17 on rising investor caution about downward correction. (Photo: vir.com.vn)
 
Hanoi (VNA) - Shares declined further on July 17 as most large-cap stocks slipped on investor caution about a steeper downward correction.

On the HCM Stock Exchange, the VN-Index dropped 1.12 percent to close at 768.91 points. The key index inched down 0.1 percent in the previous session after a three-day rally.

Twenty seven of the 30 largest shares by market value and liquidity lost value and only three gained, driving the VN30 down 1.9 percent at 745.6 points.

Sector-leading companies such as Vinamilk (VNM), Petrolimex (PLX), PV Gas (GAS), Vietcombank (VCB), Vietinbank (CTG), FPT (FPT), Hoa Phat Group (HPG), Masan Group (MSN) and VinGroup (VIC) all fell.

“The VN-30 was sold out strongly today possibly due to the restructuring of the portfolio funds in the future,” market analysts at BIDV Securities Co (BSC) wrote in a note.

Overall market breadth was negative as declining stocks outnumbered advancing ones by 194-85, with another 60 unchanged.

“Market breadth remains negative, suggesting that the pervasive cash inflows continue to diminish,” BSC’s analysts said, expecting the market to move about 765-770 points in the upcoming trading sessions as the effect of Monday’s correction eroded.

Money flowed into low-value stocks, especially those priced below 10,000 VND per share, such as Tan Tao Industry and Investment (ITA), FLC (FLC), Hoang Quan Consulting-Trading-Service Real Estate Corp (HQC), Hoang Huy Investment Services (HHS) and Quang Nam Rubber Investment (VHG).

These were the most heavily traded stocks, with eight to 12 million shares traded for each company. Except HQC, the other four stocks advanced between 1.1 and 6.8 percent each.

On the Hanoi Stock Exchange, the HNX Index lost 1.78 percent to settle at 98.64 points.

Liquidity increased sharply with nearly 335 million shares worth 5.6 trillion VND (246.7 million USD) traded in the two exchanges, up 22.8 percent in volume and 33.3 percent in value compared to the previous session.

Foreign traders also offloaded local shares. They concluded as net sellers on the HCM City’s bourse after a five-day net buying streak, responsible for net value of 98 billion VND. They also increased net selling value in Hanoi’s market by nine times compared to July 14 to touch 35 billion VND.-VNA