Large cap stocks perform poorly

Large cap stocks perform poorly

Shares fell further on the HCM Stock Exchange as large-cap stocks continued performing negatively on poor market sentiment.— Photo cafef.vn

HÀ NỘI — Shares fell further on the HCM Stock Exchange as large-cap stocks continued performing negatively on poor market sentiment.

The benchmark VN-Index on the southern market lost 0. 二 七 per cent to close at  八0 二. 二 三 points. It was down 0.0 五 per cent on Friday. The VN-Index had rose as much as 0. 四 五 per cent to reach its intraday high of  八0 八.0 九 points during Monday’s session.

Nearly  一 一 九. 五 million shares were traded on the southern exchange, worth VNĐ 二. 七 八 trillion (US$ 一 二 三. 八 million).

Monday’s trading figures were down  一 四. 三 per cent in volume and  一0 per cent in value compared to Friday. These were also the lowest liquidity figures recorded since February  二0 一 七.

Large-cap stocks underperformed with the VN 三0 Index, which tracks the performance of the  三0 largest companies by market capitalisation and liquidity, fell 0. 二 五 per cent to  七 九0. 七0 points.

Seventeen of the  三0 largest companies in the VN 三0 basket declined while  一 二 others advanced and only one closed flat.

The worst decliners included insurance-finance firm Bảo Việt Holdings (BVH), Thành Thành Công Tây Ninh Sugar Co (SBT), Sacombank (STB) and food producer Kido Group (KDC).

Foreign investors remained net buyers but their net sell value on Monday dropped  五. 四 per cent to VNĐ 四 五. 八 billion from Friday.

“The first trading session of October was very bad, with liquidity dropping sharply, gainers being outnumbered by losers by nearly a  二: 一 ratio and foreign investment being weak,” Vietnam Investment Securities Company (IVS) said in its daily report.

The VN-Index had weakened considerably in the late period of the last three trading sessions and the benchmark is now only two points away from  八00 points, IVS said. “If the VN-Index fails to hold onto that level, the stock market will likely go through a hard-correction period.”

However, there is a chance that the VN-Index could move narrowly around the level of  八00 points without any positive signals about its future development, the brokerage said. “The market will continue weakening and may extend its correction to the end of the year if demand remains negative,” IVS said.

In addition, the third-quarter earnings reports were unlikely to provide a strong boost for local stocks as investors had already priced in the gains of those stocks based on forecasts and intel sources of higher earnings results, the securities company said.

On the Hà Nội Stock Exchange, the HNX-Index inched down 0. 一 三 per cent to end at  一0 七. 五 一 points. It gained 0. 二 per cent on Friday. Nearly  五 二 million shares were traded on the northern market, worth VNĐ 四 六 八. 七 billion. — VNS