An investor observes share prices on his own computer (Photo: VNA)Hanoi (VNA)- Shares fell for a second day on November 25 as foreign blue chip offloadingpushed those stocks down and sinking oil prices caused energy sectorvolatility.
The benchmark VN Index on the HCM Stock Exchange dropped 0.3 percent to closeat 675.87 points. The southern market index has lost 1.1 percent after twosessions, erasing nearly all the increase made in the week’s first threesessions.
The HNX Index on the Hanoi Stock Exchange slid 0.2 percent to finish at 80.99points, producing a two-day decline of 0.5 percent.
Both local market indexes ended this week slightly higher than the previousweek’s closing levels. The VN Index and the HNX Index were up 0.4 percent eachafter a week.
Foreign investors remained net sellers in the past five trading sessions, andtheir blue chip sales clearly affected market sentiments.
Foreign investors on November 25 recorded a net sell value of 290 billion VND (12.9million USD), the highest sell value in the last two months, totaling their netsell value for this week at 810 billion VND, the highest in the last threemonths.
Some analysts pointed to the foreign exchange rate between the Vietnamese dong and the US dollar--which has remained highduring the past three months--as the major factor encouraging foreign investorsto sell a part of their portfolios in order to gain profits.
The State Bank of Vietnam on November 25 set its daily reference mid-point ratefor foreign currency trade among local banks at 22,137 VND, the highest sincethe central bank applied the mid-point rate on January 4.
Rising exchange rates in the domestic market was caused by market expectationsthat the US central bank would increase its lending rates in December.
Among the 10 largest companies by market capitalisation, dairy firm Vinamilk(VNM) was hit the worst by foreign selling after foreign investors offloadedtotal 460 billion VND worth of Vinamilk’s shares during the week.
VNM was down 1.6 percent, totaling a three-day loss of 4.4 percent. A part fromforeign selling, VNM was also affected by the news that the State CapitalInvestment Corporation (SCIC) would organise the auction to sell 9 percent ofVinamilk’s chartered capital on December 12, 10 days later than the previousplan.
Other blue chips, including consumer goods producer Masan Group (MSN),Vietcombank (VCB) and Vietinbank (CTG), also declined. Among these stocks, MSNslipped 1.3 per cent, the first decline after surging 11 percent in theprevious eight sessions.
Energy stocks remained negative as crude prices declined on investors’ cautiousstance towards OPEC’s meeting next week, in which the group are expected toreach an agreement to reduce their current production and stabilise the market.
Market trading liquidityincreased from November 24’s figures. More than 176.7 million shares wereexchanged worth nearly 3.28 trillion VND, an increase of 10.4 percent intrading volume and 17.8 percent in value.-VNA
VNA
