Rising pessimism drove shares down on both the stock exchanges on April 16, with local investors rushing to sell off shares amid fears of further decline, as bargain prices attracted foreign buyers.

On the Hochiminh Stock Exchange, the VN-Index fell over 2 percent to close at 574.29 points on April 16.

As 27 of the top 30 shares by market capitalisation and liquidity lost value, blue chips again dragged down the market. The VN30 index slid 2 percent to close at 634.76 points.

In addition, selling pressure on hot stocks increased substantially in the past long rally, including FLG Group (FLC), Tan Tao Investment Industry Corp (ITA), Dream House Investment Corp (DRH), and Becamex Infrastructure Investment Company (IJC). The value of most of these shares reached their floor prices.

ITA was also the most active stock on the southern bourse as14.2 million of its shares were traded at 9,000 VND per share, down 4.3 percent from the previous session.

The total market volume grew 12 percent as compared to April 15, totalling 149.2 million shares and fund certificates, worth nearly 2.48 trillion VND (117.5 million USD).

According to analysts from Vietnam Investment Securities Co, though the market is in a correction phase, but large sell orders noted in the recent sessions, even in blue chips, have raised concerns among many investors.

"However, falling prices of many stable shares, which have good fundamentals, could lure investors and help alleviate the downtrend pressure on the market," according to a research note by the analysts.

"In our opinion, selling pressure will be high on hot stocks rather than blue chips, and investors are recommended to restructure their portfolios," they emphasised.

On the Hanoi Stock Exchange, over 50 percent of the codes closed in the red, and the HNX-Index declined another 2.04 percent to end at 82.62 points.

The HNX30 also dropped 3.63 percent to close at 167.35 points.

The total market value differed slightly from April 15, with 95 million shares worth over 1 trillion VND (47.4 million USD).

PetroVietnam Construction (PVX) was the most traded stock due to strong selling pressure, as its 13.4 million shares changed hands at 5,400 VND per share, down 8.5 percent from the previous session.-VNA