Tuesday,  Mar 26, 2019,05:49 (GMT+7) 0 0
VN-Index plunges below 940 points
By Phuong Thao
Tuesday,  Oct 23, 2018,18:42 (GMT+7)

VN-Index plunges below 940 points

By Phuong Thao

The VN-Index of the Hochiminh Stock Exchange lost for the fourth straight session today, October 23 - PHOTO: THANH HOA

HCMC – The local stock market took a nosedive to below its short-term supporting level of 940 points today, October 23, driven by poor performances of regional stock exchanges and surging selling pressure in the morning matching phase.

Late bottom fishers did save the market from a crash, however. Having lost as much as 28 points in the morning, the VN-Index of the Hochiminh Stock Exchange recovered and closed the day down 13.83 points, or 1.45%, at 939.68, extending its losing streak to the fourth straight day.

Market breadth turned negative as 232 stocks lost versus 80 others managed to advance. Trading volume and value on the southern exchange jumped around 37% against the previous day at 202.9 million shares and over VND5 trillion, respectively.

HPG turned the most actively traded stock with around 10 million shares changing hands but the steel maker fell 1.5% at VND41,300. Lender STB ranked second with matching volume of 9.7 million shares, followed by property firm FLC with around nine million shares.

Trinh Hoai Giang, deputy general director of HCMC Securities Corporation, predicted the main index to slide to around 800 points from now to the end of this year.

Local equities are expected to suffer from the U.S.-China trade war in 2020, but it is likely that the market would enter a big correction between now and the middle of 2019, Giang was cited by vietstock.vn as saying.

Market risks are accelerating as investor sentiment has turned vulnerable to the global economy. Meanwhile, China has recently felt first impacts from the trade war with the U.S., with its gross domestic product growth falling and more troubles on the real estate market.

Though Vietnam still has solid economic growth and stable industrial sectors, it is facing huge risks from the global market. If China’s realty market slows down, Vietnam’s real estate industry and related sectors such as construction and building materials will follow suit, the expert said.

The HNX-Index of the Hanoi Stock Exchange slumped a massive 2.48 points, or 2.3%, at 105.07. There were 57.9 million shares valued at VND682 billion exchanged, up 44.6% and 46.3% versus Monday, respectively.

Among the top 10 heavyweights, DGC, a detergent and chemical firm, was the only gainer while port operator PHP closed flat and eight others declined strongly. Lender ACB remained the volume leader with 9.1 million shares transacted, dropping 1.2% at VND7,900, whereas its fellow bank ACB slumped 3.9% at VND29,600.

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