Shares drop for third time
Vietnamese shares on August 21 extended losses to the third day in a row as investors showed little confidence in the market after receiving negative information.
An investor follows transactions at VPBank Securities Company in Hanoi (Photo: VNS/VNA)However, the market recovered partly at the end of the day. The VN Index on the Ho Chi Minh Stock Exchange was down 1.83 percent to finish at 556.30 points and the HNX Index closed at 77.60 points, a decrease of 1.2 percent.
Low confidence in the market resulted in 22 declining sectors out of 23 sectors, including banks and gas companies.
The banks were hurt as the State Bank of Vietnam on August 20 suspended Dong A Bank's director general and deputy director general for their faults in the bank's operation.
Tran Huu Phuc, manager of Vietcombank Securities Corporation's Brokerage Department, said the information would not have a long-term serious effect on the banking sector.
At the end of the day, the banking sector fell 2.95 percent. Vietinbank (CTG) and Sacombank (STB) were the biggest losers with a decrease of 2.6 and 2.35 percent, respectively.
In addition, domestic energy companies still suffered from decreasing global oil prices. As a result, gas stocks declined by 4.14 percent. Petrovietnam Gas Corp (GAS), Petrovietnam Coating JSC (PVB) and Petrovietnam Drilling & Well Service Corp (PVD) lost 5.7, 4.7 and 3.5 percent, respectively.
The decline of other large-cap shares also dragged the market down. Among them, Bao Viet Holdings (BVH), Ma San Group Corporation (MSN) and Vietnam Dairy Products JSC (VNM) lost 2.9, 1.2 and 1 percent.
Le Dac An, head of Tan Viet Securities Corporation's Investment Division, said that investors might have over-reacted to the market information.
He said that market conditions on August 21 were a chance for investors to buy shares at low prices.
In fact, high demand for low-value shares helped the market reduce its sharp fall after the VN Index hit 542.84 points – a decrease of 4.2 percent over the previous day.
Such high demand also boosted the market trading volume on both bourses to more than 251 million shares traded on the market, worth nearly 3.5 trillion VND (156 million USD) – the highest market trading value in the last nine days.-VNA
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