Shares drop further, led by SAB, VNM hinh anh 1Illustrative photo (Photo:
Hanoi (VNA) - Shares slipped further on December 20 on the HCM Stock Exchange, driven by steep declines of Vinamilk (VNM) and Sabeco (SAB), the two largest listed stocks.

The benchmark VN-Index, the measure of 320 stocks on the southern bourse, edged down 1.73 percent to close at 662.66 points.

The gauge inched down 0.1 percent on December 19.

The December 20 fall was mainly attributed to slumps of dairy firm Vinamilk and brewery giant Sabeco which dropped 3.3 percent and 7 percent, respectively.

VNM settled down to 124,600 VND (5.49 USD) a share while SAB closed at 197,200 VND and remained the most expensive stock.

Vinamilk (VNM) is the largest stock while Sabeco (SAB) is the second.

“Drops of these two stocks accounted for two thirds of the VN-Index’s decrease and affected investor sentiment,” stock analysts at Vietnam Investment Securities Company (IVS) wrote in a note.

However, declining liquidity showed that sellers did not sell at any cost and the slump of the VN-Index was mainly driven by large-cap stocks.

Over 100 million shares worth 2.1 trillion VND were traded on HCM City’s market, down nearly 20 percent in volume compared to the December 20 level.

Blue chips were on the defensive as 22 of the top 30 largest shares by market capitalisation and liquidity lost value and only five advanced.

Foreign investors extended their net selling streak to five consecutive sessions on the HCM Stock Exchange, responsible for value of 158 billion VND.

SAB remained the top shares being purchased most by foreign traders in terms of value, with 32.6 billion VND, while the foreign sector continued to sell VNM shares for the biggest value of 124.7 billion VND.

According to IVS analysts, SAB will likely continue to drop in the following session under heavy profit-taking selling and this would negatively affect the VN-Index. SAB had doubled its price in just 10 days of trading and started to experience downward correction on December 19.

“However, if share prices fall sharply, this may trigger bargain efforts again,” they said.

On the Hanoi Stock Exchange, the HNX-Index tracking 375 stocks, decreased 0.22 percent to end at 79.77 points. The index was up 0.3 percent on December 20.

More than 35 million shares worth nearly 320 billion VND were traded.

Foreign traders were net buyers on Hanoi’s market but the net value remained tiny at just 200 million VND.-VNA