Shares tumble on market divergence hinh anh 1Shares dropped on July 20 as blue chip stocks diverged and money flowed to companies releasing solid earnings results (Photo: VNA)

Hanoi (VNA) - Shares dropped on July 20 as blue chip stocks diverged and money flowed to companies releasing solid earnings results.

The VN Index on the HCM Stock Exchange recovered in the afternoon trade but still closed down 0.37 percent at 768.41 points. The key southern market index increased 0.5 percent on July 19.

Large-cap stocks were mixed on the HCM City bourse. Sixteen of the top 30 largest firms lost value while 12 gained.

Brewery Habeco (BHN) dropped by a daily maximum 7 percent, which dragged down the VN-Index.

Despite the global oil prices hitting a six-week high and petrol retail price increasing slightly after two consecutive declines, the biggest oil listed company PV Gas (GAS) dipped 1.1 percent, while Petrolimex (PLX) slipped 1.5 percent.

The rubber and retail sectors were badly hit, with major companies including Mobile World Group (MWG), FPT Corp (FPT), Sao Vang Rubber (SCR), Da Nang Rubber (DRC), Southern Rubber Industry (CSM) ticking down between 0.3 percent and 4.5 percent.

Rubber shares recorded the biggest drop of 2.6 percent on average, followed by retail stocks with an average decrease of 1.1 percent, data showed.

[SSC to terminate 28 securities companies]

On the positive side, some banks recovered and cushioned the market.

Four of six listed lenders in the HCM City’s market gained value, of which BIDV (BID) was the biggest gainer with 2.9 percent; Eximbank (EIB) up 2.2 percent, Military Bank (MBB) up 1.5 percent, and Vietinbank (CTG) up 0.5 percent.

“The market is expected to move sideways in a divergence. Stocks having solid earnings results will still obtain investment in the short term,” said Tran Bach, a stock analyst at Bao Viet Securities Co.

Releasing positive earnings in the second quarter, shares of Refrigeration Electrical Engineering Corp (REE), Pha Lai Thermal Power (PPC) and Imexpharm Corp (IMP) rose 3.1 percent, 6.6 percent and 2.8 percent, respectively.

“However, the market is hardly likely to record a surge,” Bach wrote in a note.

On the Hanoi Stock Exchange, the HNX Index decreased 0.15 percent to 98.65 points.

Liquidity continued to decline. A total of 242.5 million shares worth a combined 4 trillion VND (176.2 million USD) were traded in the two markets, down 20 percent in both volume and value compared to July 19’s figures.-VNA