Market's previous growth wanes

Investors trace market status at the Hoang Gia stock trading floor in Ha Noi. (Photo: VNS/VNA)

The national stock market was unable to maintain growth on August 5 as shareholders raised their selling volume to cut the market gains.

The VN-Index on the HCM Stock Exchange dropped 6.04 points to finish at 601.04 points on August 6 with 69 advancing stocks and 132 losing ones.

The southern market traded a total 110.4 million shares, worth 1.89 trillion VND (86.8 million USD).

Important sectors on the market such as insurance, gas and banking fell with huge impacts on the market.

Among the 30 largest shares in terms of capitalisation and liquidity, only Vietnam Dairy Products Joint Stock Company (VNM), Hoa Sen Group (HSG) and Military Bank (MBB) improved.

MBB was the only bank stock to gain and was also the most active code on the southern bourse with 13.3 million of shares exchanged, followed by speculative shares Sao Mai Group Corporation (ASM) and FLC Group (FLC).

After gains from August 5 session, insurers turned and declined again on August 6. Bao Viet Holdings (BVH) lost 1,200 VND and Bao Minh Insurance Corporation (BMI) dropped 1,000 VND.

On the Hanoi Stock Exchange, the HNX-Index also dropped sharply after fluctuating strongly in the morning trading session.

The index finished at 83.79 points, a decrease of 0.88 percent and marked 94 decliners and 72 gainers.

Weak purchasing power resulted in low market liquidity. The northern market traded just 37.5 million shares, worth 390.57 billion VND (17.9 million USD).

Investors turned their focus from large-cap codes to mid-cap and small-cap stocks, however, that change was unable to lift the market as shareholders significantly raised their supply.

Among key shares, only Saigon Thuong Tin Real Estate JSC (SCR) improved. Saigon-Hanoi Bank (SHB) and Petro Vietnam Construction Joint Stock Company (PVX) were unchanged.

KLF Joint Venture Global Investment (KLF) remained the most active code on the market with 6.4 million shares traded, followed by FIT Investment JSC (FIT) and IB Securities Joint Stock Company (VIX).

Foreign investment on August 6 was six times previous day’s figure, recording net buy values of 174 billion VND (8 million USD).-VNA