Shares sank again on the HCM Stock Exchange on October 3 as large-cap stocks were hit by low investor optimism (Photo: vietnamfinance.vn) Hanoi (VNS/VNA) - Sharessank again on the HCM Stock Exchange on October 3 as large-cap stocks were hitby low investor optimism.
The benchmark VN Index onthe southern market fell 0.53 percent to close at 798.00 points, recoveringslightly from the intraday low of 795.05 points.
Vietnam’s benchmark indexhas lost a total of 0.84 percent after the last three sessions, sinking belowthe supportive level of 800 points.
Strong investor sellingpressure helped push the market trading liquidity up sharply from the previoussession.
More than 162.2 millionshares were traded on the southern bourse, worth 3.28 trillion VND (146 millionUSD).
October 3’s trading figureswere up 35.7 percent in volume and 18 percent in value compared to the previoussession.
On the southern market,losing stocks outnumbered gaining ones by a roughly 2:1 ratio, proving thatmarket trading conditions were quite poor.
Large-cap stocks tradedpoorly as 23 of the 30 largest stocks, in terms of market capitalisation andtrading liquidity in the VN30 Index, declined while only five others endedhigher.
Declining stocks in theVN30 Index dropped between 3.7 percent and 0.1 percent, with shares of Thanh ThanhCong Tay Ninh Sugar Co (SBT), PetroVietnam Drilling and Well Services (PVD) andKinh Bac City Development Holding Corp (KBC) coming in as the threeworst-performing stocks.
According to the Hanoi-basedbrokerage Bao Viet Securities Co (BVSC), October 3’s fall signaled the stockmarket could keep declining in the coming sessions.
Investors becamepessimistic about the current market trading conditions and they worried the VNIndex might suffer a strong downward trend in the short term, BVSC said in itsdaily report.
Poor investor confidencewas the major factor that pushed market trading liquidity higher and increasedthe number of declining stocks on the market, it added.
However, investors’bottom-fishing instincts showed when the benchmark index touched the level of795 points during the Tuesday session. That investor behavior could lift the VNIndex in the next one or two sessions, BVSC said.
“In the worst scenario, theVN Index would retreat to the short-term supportive range of 785-790 points andwe expect the benchmark to rebound when it hits that range,” the report said.
On the Hanoi StockExchange, the HNX Index dipped 0.91 percent to end at 106.53 points. More than52 million shares were traded on the northern market, worth 581.4 billion VND.-VNA
VNA
