Friday, August 18, 2017 - 19:57:14

Shares dip on sell-off pressure

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The two benchmark indices continued to lose ground on Nov. 14 as the pressure to offload stock rose.

On the HCM Stock Exchange, the VN-Index retreated 1.15 percent, ending at 391.74 points with 190 out of 280 codes declining.

Persistent downturn on the equity market undermined investor confidence although share prices had fallen much lower, stock analysts with FPT Securities Co wrote in their daily report.

"Investors obviously lost patience in a rebound because the longer they wait, the more they lose," he said. "All is turning its back on the market," he added, noting cash flow was declining day by day.

Value of Nov. 14's trades continued to drop slightly compared to Friday's level, totalling 557.4 billion VND (26.1 million USD) on a volume of 37 million shares.

Among blue chips, only Vinamilk (VNM) and food processor Masan (MSN) advanced, gaining 1.4 and 0.8 percent, respectively. Meanwhile, PetroVietnam Finance (PVF) and property developer Vincom (VIC) hit their floor prices.

Sacombank (STB) was the most active code with 1.67 million shares traded, closing unchanged at 13,900 VND (0.66 USD).

On the Hanoi Stock Exchange, the HNX-Index sank to an all-time low of 62.45 points, down 1.8 percent from Friday's close on local sell-off.

Losers outnumbered gainers by 185-45, with market value declining 12 percent to 389.6 billion VND (18.3 million USD) with only 48.6 million shares changing hands.

PetroVietnam Construction Co (PVX), not Kim Long Securities (KLS) as in previous sessions, was the most heavily traded stock nationwide on Nov. 14 with more than 3.5 million shares exchanged.

Analysts warned that any attempts at seeking short term profits were risky due to bad investor sentiment, and that rebounds, if any, would not last long enough to make profits because of T+4 restrictions (based on shares arriving in investor accounts three days after payment).

Investors were told to retain cash and disburse only small amounts of money on the most liquid shares. Foreign investors finished Nov. 14 as net buyers on both exchanges, picking up nearly 11 billion VND (523,800 USD) worth of shares. /.


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