A BIDV branch in Hanoi. BIDV was among blue chips hitting the floor price on January 19 (Photo: VNA) Thiswas the biggest daily retreat of Vietnam’s benchmark since the first quarter of2020 and the second falling day this week. It inched down just 0.2 percent onJanuary 18.
Onthe Ho Chi Minh Stock Exchange, overall market breadth was pessimistic with 394stocks falling, only 42 rising and 39 closing flat.
Bluechips were the main drag when all of the top 30 largest shares by marketvalue and liquidity (VN30) plummeted, of which eight hit the floor price of a7-per-cent drop. All of them were banks and financial companies including BIDV(BID), Vietinbank (CTG), Military Bank (MBB), VPBank (VPB), Sacombank (STB), HoChi Minh Development Bank (HDB), Saigon Securities Inc (SSI) and Hoang HuyInvestment Financial Services (TCH).
ExceptVincom Retail (VRE) rebounding near the reference price by the end of thesession, others lost more than 2 percent.
Liquidityhit a record of more than 986 million shares worth 20.4 trillion VND (879.3million USD), up 19 percent in volume and 32 percent in value compared to January18’s figures.
Accordingto MB Securities Co (MBS), the fact that many stocks in the VN30dropped was a bad sign which was driven by surging profit-taking pressurefrom investors, especially who use high leverage to buy stocks and stock priceshad increased fervently in the recent uptrend.
Besides,many attempts to make sell orders of investors were blocked due to the stockexchange’s systematic problems while investors tried to cash in at all costs.
Beforethe January 19 session, the VN-Index rose nearly 8 percent since early January.Looking back to 2020, the market was on an uptrend since August and theVN-Index has gained nearly 50 percent from 798 points seen on August 20 to1,191 points on January 18.
MBSanalysts reckoned pessimistic trading on January 19 would take the market sometime to stabilise and recover and the VN-Index may retest the support zone of1,033-1,064 points before another strong recovery appears.
“Normally,fast and steep declines will not last long but only 1-2 sessions. Stocks thatwere sold at the floor price will soon bounce back as soon as the market isstabilised,” they wrote in a market report.
Onthe Hanoi Stock Exchange, the HNX-Index decreased 2.81 percent to end at 224.02points.
Nearly281 million shares worth 4 trillion VND were exchanged in the northern market.
Thus,the total trading value on the two exchanges reached 24.31 trillion VND (1.05billion USD) on January 19.
Foreigninvestors were net buyers in the two markets with total net buy value of 140billion VND./.
VNA
