Blue chips drag VN-Index to second straight losing session

By Hung Le   December 24, 2020 | 04:10 am PT
Blue chips drag VN-Index to second straight losing session
An investor walks away from screens showing stock prices at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
The VN-Index slumped 1.05 percent to 1067.52 points Wednesday, with almost all blue chips ending in the red.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw 367 stocks lose and just 88 gain. Total trading volume remained at the high levels of late at VND14.18 trillion ($613.23 million).

According to brokerage BVSC, many stocks in the small-, mid- and large- cap segments are being overbought, so the market will likely see strong short-term corrective pressure in the coming sessions.

"The short-term uptrend of the VN-Index will likely face strong resistance at the 1,100-point psychological threshold. Cash will continue to rotate through various sectors to seek profits, especially into small and medium caps, but these stocks become much more risky as the market approaches a resistance zone," the brokerage said in its latest report.

The VN30-Index plunged 1.12 percent, with 26 stocks losing and only two gaining.

Topping losses were private banks, which have been the best performers in the previous few sessions. HDB of HDBank shed 3.3 percent, EIB of Eximbank and TCB of Techcombank, 2.6 percent each, VPB of VPBank was down 1.6 percent, and STB of Sacombank, down 1.2 percent.

Among state owned banks, BID of BIDV was down 2.4 percent, CTG of VietinBank, 1.6 percent, VCB of Vietcombank, 0.2 percent, and MBB of mid-sized Military Bank, 0.4 percent.

Real estate was also down as a group. KDH of Khang Dien House and TCH of Hoang Huy Group both slumped 1.7 percent, NVL of Novaland fell 1.5 percent and VHM of giant Vinhomes, 1.3 percent. ROS of FLC Faros kept its opening price.

Other major losers this session included SBT of agricultural exporter TTC-Sugar, down 3.3 percent, POW of electricity generator PetroVietnam Power, 2.4 percent, VRE of mall operator Vincom Retail, 2.1 percent, and REE of appliances maker Refrigeration Electrical Engineering, 1.6 percent.

VIC of private conglomerate Vingroup, HoSE’s largest cap, maintained its opening price this session.

The only two major stocks that gained were SAB of major brewer Sabeco, up 0.5 percent, and VJC of budget carrier Vietjet Air, up 0.3 percent.

The HNX-Index for the Hanoi Stock Exchange, Vietnam’s second main bourse and home to mid- and smaller-caps, along with the UPCoM-Index for the Unlisted Public Companies Market, both ended over a week of straight gains, shedding 1.38 percent and 0.71 percent respectively.

Foreign investors continued to be net sellers to the tune of over VND50 billion on all three bourses, with net selling pressure mostly on VNM of dairy giant Vinamilk, which was down 1.4 percent, and HPG of steelmaker Hoa Phat Group, down 0.1 percent.

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