Monday,  Dec 17, 2018,11:33 (GMT+7) 0 0
VN-Index takes nosedive
By Phuong Thao
Thursday,  Oct 11, 2018,18:51 (GMT+7)

VN-Index takes nosedive

By Phuong Thao

The VN-Index of the Hochiminh Stock Exchange sheds a hefty 4.84% at 945.89 today, October 11 - PHOTO: THANH HOA

HCMC – The VN-Index of the Hochiminh Stock Exchange went in line with the global downtrend to stage a jaw-dropping decline today, October 11, marking the second biggest single-day point drop in 2018 after a 5.1% tumble on February 5.

The main index closed the day at 945.89, slumping 48.07 points, or 4.84%, against the previous day. The southern market reported 300 falling stocks, including 94 stocks closing at the floor prices, while only 30 others managed to gain.

According to tinnhanhchungkhoan.vn, stock indexes on the U.S. market had tumbled overnight, giving up between 3% and nearly 5%, amid rising government bond yields and new developments of the trade war with China.

Asian markets felt the domino effect from the U.S. market crash, with most indexes in the region sliding steeply. In Vietnam, the VN-Index lost up to 6% in the morning before bouncing back a little bit thanks to active bottom fishing in the afternoon.

Nguyen Kim Chi, director of KIS Vietnam Securities Company’s Pham Ngoc Thach branch, said bad moves of global markets were the key factor of the market crash in Vietnam today. Besides, local investors were pessimistic as the local market was in a correction phase.

However, Chi expected the main index to recover soon as bottom fishers appeared at the end of the day. From a technical perspective, the VN-Index may still rebound to 950 points in the worst scenario for the next few days, Chi was cited by vietstock.vn as saying.

Nguyen Xuan Binh, deputy analysis director of Bao Viet Securities Company, said that investors are afraid of falling cash flow into local equities due to increasing U.S. bond yields. They are also concerned about the accelerating trade war between the U.S. and China, whereas forex rates and interest rates in the country are hiking.

The hefty drop today is a challenge to the market’s recovery in the short term. The main index may still resume its uptrend if the supporting zone from 940 to 950 points stays firm.

Otherwise, if the VN-Index drops below 950 points, the market outlook will shift to a downtrend. In this case, the main index is forecast to plunge to around 880 points, Binh said.

The HNX-Index of the Hanoi Stock Exchange lost a whopping 6.59 points, or 5.79%, at 107.17, with 159 stocks losing and 22 stocks rising. The northern index fell for the fifth consecutive session.

Trading volume and value jumped 113% and 118% versus the session earlier at 101 million shares worth VND1.3 trillion, respectively. Lender SHB again took the lead for liquidity with 21.4 million shares exchanged, slumping 8.1% at VND7,900.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.