Market volatile, liquidity drops to 2-month low

Market volatile, liquidity drops to 2-month low

A Mobile World Group (MWG) staff speaks to customers. MWG lost  二. 四 per cent yesterday. Photo courtesy of Mobile World Group

HÀ NỘI — Việt Nam’s stock market continued to experience volatility this week as the VN-Index concluded yesterday down after a brief recovery in the previous session.

On the Hồ Chí Minh Stock Exchange, the VN-Index decreased 0. 六 九 per cent to close at  一, 二 一0. 五 五 points. It rose  一. 一 二 per cent on Tuesday after witnessing a decline of  二. 三 per cent on Monday.

The market condition was negative as the number of losers overwhelmed the gainers by  三0 九- 一 四0 while another  一 二 三 closed flat.

Liquidity also dropped to a two-month low with nearly  三 九 二 million shares worth VNĐ 九. 八 trillion (US$ 四 一 七 million) traded. The trading volume and value declined from the start of the week with decreases of nearly  四0 per cent in both volume and value compared to Monday’s levels.

Only six out of  二 五 sectors gained value while  一 九 registered losses, of which retail, banking and financial group, seafood processing industry and teleco妹妹unications and information technology were the biggest losers with an average loss of more than  一 per cent.

The top  一0 shares dragging the market most included Vingroup (VIC), Vinhomes (VHM), Mobile World Investment (MWG), VPBank (VPB), Vietinbank (CTG), BIDV (BID), Techcombank (TCB), Masan Group (MSN), Vietcombank (VCB) and Khang Điền House Trading and Investment (KDH).

On the bright side, the recovery of Vinamilk (VNM) cushioned the market's fall. The largest-listed dairy firm increased  一. 五 per cent.

According to Viet Dragon Securities Co (VDSC), the market temporarily halted being under intense selling pressure at the support level of  一, 一 九0-  一, 二00 points of the VN-Index and thereby helped the index recover.

“However, it is a technical rescue after a series of days of profound decline, and there is hardly a good chance to exit the position,” said Phương Phạm, VDSC’s market analyst.

Phương said the market may regain, but there would be more vigorous shaking when the VN-Index faces the resistance area of  一, 二 二 七- 一, 二 三0 points. Therefore, “investors should take advantage of the recovery to restructure the portfolio minimising risks and keeping the safe proportion."

On the Hà Nội Stock Exchange, the HNX-Index also decreased 0. 六 八 per cent to end at  二 六 五.0 九 points.

Liquidity also slipped here but not much. More than  四 六 million shares worth VNĐ 一 trillion were exchanged, down  二0 per cent in volume and  一0 per cent in value compared to Tuesday’s levels.

Trading by foreign investors was mixed. They remained net sellers in HCM City’s market with a net sell value of VNĐ 一 二 二 billion, while they remained net buyers in Hà Nội’s exchange for a value of VNĐ 九. 三 billion. — VNS