Vinamilk extends losing streak

Hanoi (VNA) - Vietnamese shares fell on both local bourses on November 19 as Vinamilk (VNM) extended its fall for a third day, pulling the market down.

The benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Hanoi Stock Exchange inched down 0.2 percent each to close at 601.90 points and 81.24 points, respectively.

"Investors suddenly increased their selling activity in some big stocks, especially Vinamilk, when the session was nearing its end," Sai Gon-Hanoi Securities Corporation (SHS) wrote in its report.

The increased selling of Vinamilk made this stock fall 1.5 percent, bringing its loss to 7.1 percent over the last three days after Vinamilk had gained 10.2 percent in the previous five days before it started declining.

Other big stocks that also fell included conglomerate FPT Corporation (FPT), which fell 1 percent.

In addition, increased global oil prices on November 18 had a downward impact on local plastic producers as they had to spend more to buy input materials for production.

On November 18, the US benchmark crude West Texas Intermediate (WTI) inched up 0.2 percent to trade at 40.75 USD a barrel and the Brent crude gained 1.3 percent to trade at 44.14 USD a barrel.

The biggest plastic stocks pulled the plastic firms index down 1.1 percent, led by Tien Phong Plastic JSC (NTP), which dropped 1.5 percent, and Binh Minh Plastic JSC (BMP), which lost 2.2 percent.

On the positive side, fish exporters improved after receiving positive news from the progress of the international trade agreement Trans Pacific Partnership (TPP), which spans 12 countries including Vietnam.

SHS said that 12 countries on November 19 decided that the TPP would be finalised in February of 2016, which is much sooner than it was previously predicted.

That information gave a boost to local fish exporters such as Mekong Fisheries Company (AAA), which jumped 3.8 percent, and Ben Tre Aquaproduct Import & Export JSC (ABT), which was up 1 percent.

Property developer FLC Group (FLC) remained the most active stock with more than 20 million shares and surged 6 percent on expectations that FLC Group will receive positive reactions from the market for starting to sell its property project FLC Twin Towers in Hanoi on November 20.

Both local bourses exchanged more than 164 million shares, worth 2.44 trillion VND (108.4 million USD), a decrease of 16 percent from November 18.-VNA