Illustrative image (Source: VNA) Hanoi (VNS/VNA) - Shares declined more steeply on August 29 afternoontrading after many heavyweight shares were sold, potentially driven by thewithdrawal of an exchange-traded fund (ETF).
The benchmark VN Index on the HCMStock Exchange edged down 0.42 percent to close at 774.03 points. The southernmarket index picked up 0.73 percent on August 28.
On the Hanoi Stock Exchange, theHNX-Index decreased 0.37 percent to end the session at 103.52 points. Thenorthern market index rallied 1.23 percent in the previous session.
Large-cap stocks led the marketdownturn with 23 stocks in the VN30 basket (the 30 largest shares by marketvalue and liquidity on the HCM Stock Exchange) lost value while only sixgained.
Many stocks tumbled in the At theClose Order (ATC) under heavy selling pressure which harmed the market. Biglosers included dairy giant Vinamilk, insurer Bao Viet Holdings, confectioneryKido Group, Sacombank, Vietcombank, Vietinbank, PV Gas, brewery Sabeco, MasanGroup and Novaland Investment Group.
According to Nguyen The Minh, headof the capital market analysis at Saigon Securities Inc, the market slump on August29 was likely caused by the withdrawal of VanEck Vectors Vietnam ETF (VNM ETF)while he indicated that most of the big stocks being sold heavily in the ATCwere in this ETF’s portfolio.
Minh said VNM ETF’s fundcertificates had been trading at a discount to net asset value since thebeginning of August and this might have prompted the fund to withdraw. Inaddition, macroeconomic factors and political tension in some countries mighthave fueled the withdrawal.
However, Minh reckoned the netselling would only happen in one or two sessions and not persist in the nextsessions as the fund’s discount situation had declined considerably.
VNM ETF was traded at a 0.98 percentdiscount on August 28 on the New York Stock Exchange at 14.49 USD per fundcertificate, higher than 14.07 USD on August 22. Its net asset value reached 293.4million USD on August 28.
Investors withdrew 2.87 million USDfrom VNM ETF last week, marking two consecutive weeks of net selling. The fundis expected to announce its portfolio restructuring in the third quarter onSeptember 8.
Cash continued to flow intospeculative stocks in the real estate sector. Six of the 10 most active stockson the southern bourse were of property firms, with FLC Group and Hoang QuanConsulting-Trading-Service Real Estate JSC leading with over 60 million sharesand 30.9 million shares being traded, respectively. Others saw trading of 4.5million to six million shares.
Trading volume was nearly unchangedwith a total of 314.5 million shares traded in the two markets but the value oftrades decreased 5.8 percent from the previous session, exceeding 4.9 trillionVND (217.7 million USD).-VNA
On the Hanoi Stock Exchange, theHNX-Index decreased 0.37 percent to end the session at 103.52 points. Thenorthern market index rallied 1.23 percent in the previous session.
Large-cap stocks led the marketdownturn with 23 stocks in the VN30 basket (the 30 largest shares by marketvalue and liquidity on the HCM Stock Exchange) lost value while only sixgained.
Many stocks tumbled in the At theClose Order (ATC) under heavy selling pressure which harmed the market. Biglosers included dairy giant Vinamilk, insurer Bao Viet Holdings, confectioneryKido Group, Sacombank, Vietcombank, Vietinbank, PV Gas, brewery Sabeco, MasanGroup and Novaland Investment Group.
According to Nguyen The Minh, headof the capital market analysis at Saigon Securities Inc, the market slump on August29 was likely caused by the withdrawal of VanEck Vectors Vietnam ETF (VNM ETF)while he indicated that most of the big stocks being sold heavily in the ATCwere in this ETF’s portfolio.
Minh said VNM ETF’s fundcertificates had been trading at a discount to net asset value since thebeginning of August and this might have prompted the fund to withdraw. Inaddition, macroeconomic factors and political tension in some countries mighthave fueled the withdrawal.
However, Minh reckoned the netselling would only happen in one or two sessions and not persist in the nextsessions as the fund’s discount situation had declined considerably.
VNM ETF was traded at a 0.98 percentdiscount on August 28 on the New York Stock Exchange at 14.49 USD per fundcertificate, higher than 14.07 USD on August 22. Its net asset value reached 293.4million USD on August 28.
Investors withdrew 2.87 million USDfrom VNM ETF last week, marking two consecutive weeks of net selling. The fundis expected to announce its portfolio restructuring in the third quarter onSeptember 8.
Cash continued to flow intospeculative stocks in the real estate sector. Six of the 10 most active stockson the southern bourse were of property firms, with FLC Group and Hoang QuanConsulting-Trading-Service Real Estate JSC leading with over 60 million sharesand 30.9 million shares being traded, respectively. Others saw trading of 4.5million to six million shares.
Trading volume was nearly unchangedwith a total of 314.5 million shares traded in the two markets but the value oftrades decreased 5.8 percent from the previous session, exceeding 4.9 trillionVND (217.7 million USD).-VNA
VNA
