Monday,  Jul 6, 2020,06:52 (GMT+7) 0 0
Market faces mounting selloff pressure
By Hong Ngan
Monday,  Sep 9, 2019,18:47 (GMT+7)

Market faces mounting selloff pressure

By Hong Ngan

HCMC Securities Corporation staff monitor stock prices. The VN-Index of the Hochiminh Stock Exchange closed at the reference line on Monday – PHOTO: THANH HOA

HCMC – Although the extended rally of two heavyweights VNM and VIC, VN-Index of the Hochiminh Stock Exchange only managed to end today’s session at the reference line due to strong selloff pressure on the local stock market.

After seeing four straight losing sessions, investors seemed more cautious entering the first trading session of the week, resulting in sluggish trading of many stocks.

The benchmark index in the southern market closed at the reference line, slightly adding 0.04 point to stay at 974.12, with 196 stocks advancing and 111 others losing. Market volume inched up 3.9% with over 150,000 million shares, worth roughly VND3.7 trillion, changing hands.

The southern bourse saw significant contribution of over VND1.6 trillion of shares traded in block deals, including 13 million shares valued at VND330 billion of construction firm ROS and over 18 million shares, worth VND320 billion, from lender TCB.

As for the two biggest contributors, dairy firm VNM gained 1.4% to close at the intraday high at VND124,500 per share, while property firm VIC jumped 1.2% to stay at VND122,600 after four slight correcting sessions last week.

Notably, among poor perfomers, Rang Dong Light Source and Vacuum Flask JSC (RAL) saw its stock declining an astounding 13%, from VND85,250 on August 28 to VND74,600 as of today, September 9, as a consequence of a mercury contamination incident triggered by its factory fire.

Initially, the lamp maker said in a release that it solely used Amalgam as a solid mixture of mercury and a metal to make compact lamps and several kilograms of this substance was left intact in a warehouse when it was destroyed by the blaze, reported Thanh Nien newspaper. However, testing results released last weekend from local competent forces showed that the firm did use liquid mercury to make lamps, alongside Amalgam. Liquid mercury is more toxic than Amalgam.

Overall, the amount of mercury being spread into the environment through the fire was around 15.1-27.2 kilograms, said sources.

Such dishonesty of the lamp maker has sparked public rage and also serves as the main cause for its stock to suffer steep falls.

On the northern bourse, HNX-Index traded in the negative territory most of the afternoon phase as a result of low liquidity.

The index fell 0.06 point, or 0.06%, against last Friday at 100.85 points, with 33 gainers and 40 losers. More than 16 million shares worth over VND196 billion were transacted in the Hanoi market, up 4.29% in volume and 9.85% in value versus the previous session.

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