Illustrative image (Source: VNA) Hanoi (VNA) - Local shares declined on November 14 on the two national stock exchanges as foreign investors increased selling caused by uncertainty on the fate of the Trans-Pacific Partnership (TPP).
The benchmark VN-Index, the measure of 314 stocks on the HCM Stock Exchange, edged down 0.9 percent to close at 673.1 points. The index had gained 1.9 percent last week.
On the Hanoi Stock Exchange, the HNX-Index tracking 377 stocks inched down 0.3 percent to 80.9 points. It increased 0.9 percent in the previous week.
Foreign investors were net sellers in HCM City’s market for a total value of 272 billion VND (12.2 million USD). They sold shares worth 522 billion (VND), making up 21.2 percent of total trading value in the market, while picking up only 250 billion VND worth of net buy value.
Heavy selling pressure dragged down stock prices of large-cap companies. Private equity business Masan Group (MSN) plunged 4 percent. Dairy giant Vinamilk (VNM) slipped 2.6 percent. Real estate developer VinGroup (VIC) fell 2.5 percent and lender BIDV (BID) decreased 2.2 percent.
Of the top 30 largest shares by market capitalisation, only seven advanced and up to 23 stocks tumbled.
“Traders were uncertainty about the fate of Trans-Pacific Partnership after the Obama administration suspended the trade deal,” stock analysts at FPT Securities Company wrote in a report.
The destiny of TPP will depend on newly-elected US President Donald Trump and Republican lawmakers who were not in favour of the deal, in which Vietnam is reportedly the biggest beneficiary.
Overall market condition was negative when the number of losing stocks outnumbered that of gaining ones by 246-188. Another 257 closed unchanged.
On the bright side, FAROS Construction Corporation (ROS) hit the daily limit rise of 7 percent to 116,200 VND, roughly 10 times higher than the starting price on the floating day on October 14.
Investors bet on mineral and coal shares following sharp rises in prices of “black gold” in the global markets.
Coal prices have begun to recover since early this year after more than eight years of decline. As of November, coal price has increased by 112 percent, the best performer this year compared with other energy commodities.
Local coal shares hit the ceiling prices of 7-10 percent, including Vinacomin – Nui Beo Coal (NBC), Vinacomin – Coc Sau Coal (TC6), Vinacomin – Ha Tu Coal (THT) and Bac Giang Exploitable Mineral (BGM).
Liquidity increased with a total of 159.6 million shares worth 2.8 trillion VND traded in the two markets, up 38.8 percent in volume and 47.4 percent in value compared to the previous session’s levels.-VNA
