An electronic stock board on Ba Trieu Street in Hanoi (Photo: VNA)
Hanoi (VNA) - Shares tumbled on November 2 on the two exchanges on rising investor caution, caused by uncertainties in global markets.
The benchmark VN-Index, a measure of 314 stocks on the HCM Stock Exchange dropped 0.8 percent to close at 671.4 points after increasing 0.1 percent on the previous day.
On the Hanoi Stock Exchange, the HNX-Index tracking 379 shares was down 1.2 percent to 81.3 points. It had rose 0.1 percent on the previous day.
Overall market conditions were negative with 273 of total 693 stocks declining while 133 advanced.
Market sentiment weakened as global stocks kept falling amid anxiety of the outcome of the US presidential election among other things.
“Although Vietnam’s market typically lacks correlation with the world market, a solid trend may leave an effect,” analysts at FPT Securities Co wrote in a note.
Blue chips led the downturn as 23 of the top 30 biggest shares by market capitalisation dropped while only three increased. The biggest losers included insurer Bao Viet Holding (BVH) and steelmaker Hoa Phat Group (HPG) each down more than 2 percent. The second largest listed lender Vietcombank (VCB) and real estate giant VinGroup (VIC) both fell over 1 percent.
Money focused on low-valued stocks as ten of the top 10 most active stocks on the two exchanges had value of below 10,000 VND per share.
Realty firms attracted the most attention. FLC Group (FLC), Tan Tao Investment and Industry (ITA), Hoang Quan Consulting-Trading-Service Real Estate (HQC), Sacomreal (SCR), Tasco (HUT) and PetroVietnam Construction (PVX) all were among the most heavily-traded stocks.
Liquidity improved with a total of 175.2 million shares worth over 2.7 trillion VND (121.1 million USD) exchanged in the two markets, up 13.3 percent in volume and 22.7 percent in value compared to November 1.
According to analysts at BIDV Securities Co, the VN-Index’s retreat to the support level of 670 points showed that the market is no out of a medium-term upswing.
“Increased market risks can make the market adjust to lower support thresholds of around 660 points,” they wrote in a note.
Foreign investors returned as net sellers in HCM City’s market on November 2 after three consecutive net buying sessions, offloading shares worth a net value of 46 billion VND. They also extended net selling in Hanoi’s market to three days in a row with net sell value of 6 billion VND.-VNA
