VN-Index slumps, ending recovery streak

By Hung Le   August 14, 2020 | 06:55 am PT
VN-Index slumps, ending recovery streak
An investor points at stock prices on a screen at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
The VN-Index slumped 0.5 percent to 850.74 points Friday, ending a near two-week recovery streak that saw it climb by over 6 percent.

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw 239 tickers lose and 145 gain. Total trading volume improved 10 percent over the previous session, reaching VND5.16 trillion ($222 million) worth of shares.

The HNX-Index for the Hanoi Stock Exchange, home to mid- and smaller-caps, also slipped 0.31 percent, and the UPCoM-Index for the Unlisted Public Companies Market shed 0.21 percent.

Analysts had attributed the positive stock market performance to other investment channels such as gold and deposit interest losing their lustre and to "dead" money from investors unable to otherwise spend or invest in ordinary businesses activities in areas where the government has imposed lockdown measures.

The price of SJC gold, Vietnam’s national brand, had fallen from its peak of VND62 million ($2,669) per tael on August 6 to VND53 million ($2,281) by Wednesday afternoon. However, by Friday morning, it has rebounded to VND56.7 million ($2,441) per tael, following similar global movements.

The State-Bank of Vietnam on Monday had issued a document instructing commercial banks to cut down on expenses, salaries and bonuses, in order to keep interest rates down for Covid-19 affected businesses, brokerage Bao Viet Securities noted in a report.

Prime Minister Nguyen Xuan Phuc had said at a government meeting early this month that the government was "determined to" continue targeting 100 percent disbursement of public investment capital in 13 localities in the Mekong Delta region, Vietnam’s agricultural heartland, to stimulate production and maintain stable macro-economic conditions after a poor first half performance.

On Friday, the VN30-Index for the stock market’s 30 largest caps slipped 0.39 percent, with 16 tickers losing and nine gaining.

Leading losses were ROS of real estate developer FLC Faros, down 2.2 percent, MSN of food conglomerate Masan Group, 1.8 percent, and SSI of top brokerage Saigon Securities Inc., 1.7 percent.

BID of BIDV, VCB of Vietcombank and CTG of VietinBank, Vietnam’s three biggest state-owned lenders by assets and three of the VN30’s biggest caps, shed 1.6 percent, 1.2 percent and 1.1 percent respectively.

VPB of private VPBank, NVL of real estate developer Novaland, and HPG of leading steelmaker Hoa Phat Group, were also among the losers, down 1.6 percent each.

VIC of private conglomerate Vingroup, HoSE’s largest cap, slumped 0.7 percent, and GAS of energy giant PetroVietnam Gas lost 0.4 percent.

Mid-sized banks led the gainers, with EIB of Eximbank rising 1.8 percent, MBB of state-owned Military Bank, 1.2 percent, and HDB of HDBank, 1.1 percent.

MWG of electronics retailer Mobile World and SAB of major brewer Sabeco both gained 1.1 percent, while VHM of real estate developer Vinhomes added 0.4 percent.

Foreign investors continued to be net sellers for the sixth straight session to the tune of VND247 billion ($10.63 million) on all three bourses, with MSN of Masan Group and VCB of Vietcombank the most offloaded stocks.

go to top