VN Index falls on intraday selling

Hanoi (VNS/VNA) - Shares declined on the Ho Chi Minh Stock Exchange on October 20 as investor confidence weakened towards the end of the session, resulting in the decline of large-cap stocks.

The benchmark VN Index edged down 0.25 percent to close at 826.84 points, retreating from its intraday growth of 0.55 percent.

The benchmark index also stepped back from a 0.15 percent gain made on Thursday. It advanced total 0.7 percent over the week.

The market breadth was quite positive with 178 declining stocks, nearly double the number of gaining ones.

The imbalance between gaining and declining stocks suggested investor confidence was quite poor and selling pressure was high, according to Bao Viet Securities Co (BVSC).

More than 196 million shares were traded on the southern bourse, worth 4.76 trillion VND (211.7 million USD).

The trading figures were up 16 percent in both volume and value compared to October 19’s numbers.

BVSC analyst Tran Xuan Bach said in the company’s daily report that the VN Index closed down slightly in the last trading session of the week as selling pressure rose when the session was ending.

Selling pressure dominated the stock market and investors became more cautious with the market trading condition, especially when the VN Index was mainly driven by large-cap stocks, he said.

Selling in large-cap stocks may rise in the short-term if investor confidence remained weak in coming days, making the VN Index break its supportive ranges, Bach added.

Blue-chip stocks underperformed on October 20 as the VN30 Index, which tracks the performance of the top 30 companies by market capitalisation and trading liquidity, fell 0.42 percent.

In the VN30 basket, two-thirds of the 30 top stocks declined while only nine advanced.

Among declining stocks were Thanh Thanh Cong Tây Ninh Sugar Co (SBT), digital retailer Mobile World (MWG), brewer Sabeco (SAB), logistics firm Gemadept (GMD) and DHG Pharmaceutical Co (DHG).

MWG dropped 3.4 percent from its six-day rally of total 8 percent. DHG lost 2 percent after announcing its pre-tax profit in the past quarter fell 17 percent year on year to 144.3 billion VND.

“The VN Index could fall further in early sessions next week,” Bach said, adding that the nearest short-term supportive range for the benchmark index is between 819 and 824 points.

On the Hanoi Stock Exchange, the HNX Index slumped 0.86 percent to end at 108.14 points, totaling a three-day decline of 1.5 percent.

The northern market index also erased all gains made in the first two sessions, closing down 0.9 percent after one trading week.

Nearly 43.6 million shares were traded on the northern bourse, worth 479.8 billion VND.-VNA