Daily Market Report on March 15th: Foreign investors offload blue chips

By Dam Tuan, VCBSMarch 16, 2016 | 01:50 am PT
This week's second day of trading saw local transaction boards painted red as pressure increased to sell-off shares. Foreign investors led the cut-and-run, offloading a net value of nearly VND110 billion (almost $5 million).

Sell-offs heated up the market. Photo: VNExpress

Foreign investors seemed eager to cash in on blue chips such as the Commercial Bank for Foreign Trade of Vietnam (VCB), Hoa Phat Group (HPG) and Petrovietnam Gas Joint Stock Corporation (GAS).

Tumbling global oil prices were the main reason for the meltdown in oil and gas stocks, and the HOSE and HNX indexes sank rapidly into the red.

While most stocks plunged into negative territory, steel stocks climbed thanks to news that the Ministry of Industry and Trade will continue its support domestic firms such as HPG, Nam Kim Steel Group (NKG) and Pomina Steel Corporation (POM).

The two largest stocks by capitalization, Vinamilk (VNM) and Vietcombank (VCB), bounced back slightly at the end of the session to cushion the fall.

Penny and midcap tickers followed the sell-off trend after a promising few days. As history shows, when the VNX approaches the 580 point mark, caution prevails and trading is lackluster.

Without reliable information, the index may be in for a slight correction in the coming sessions. Investors are advised to reduce their portfolios and keep a close eye on the market, while avoiding new purchases because of the high chance shares will continue to fall.

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