Stocks sink on sell-offs by foreign investors

Investors watch market movements at the SSI trading floor in Ha Noi. Foreign investors remained net sellers on the Vietnamese stock market yesterday, pulling down both exchanges. - VNS Photo Viet Thanh

Foreigners were responsible for net sales of nearly VND252 billion (US$11.9 million) on the HCM City Stock Exchange, an increase of 73 per cent compared with Wednesday.

They were also net sellers on the ­Ha Noi Stock Exchange, with a value of almost VND8 billion (US$379,000), down 6 per cent from the previous day.

Consecutive net sales by foreign sector since the beginning of this week have made local investors pessimistic about the market outlook, causing them to follow suit fearing deeper declines.

Liquidity on HCM City's bourse yesterday climbed 40 per cent in volume and value, reaching nearly 170 million shares worth VND3.17 trillion (US$150.2 million).

Heavy sell-offs also pushed the VN-Index down a further 2.83 per cent to close yesterday's session at 587.17 points, while the VN30, which tracks the top 30 shares by market value and liquidity, sank 2.79 per cent to end at 623.76 points.

Realty stocks that had been driving the market also decreased yesterday.

FLC Group (FLC), the most active code with over 16 million shares traded, dropped 6.25 per cent to close at VND10,500 per share. Others like Tan Tao Investment Industry (ITA), Kinh Bac City Development (KBC), Hoang Anh Gia Lai Co (HAG) and Hoang Quan Real Estate (HQC) also slumped between 2 and 6 per cent.

On the Ha Noi Stock Exchange, the HNX-Index slid 2.64 per cent to finish the session at 87.20 points. The number of decliners was four times higher than advancers.

Market volume increased 35 per cent from the previous session, totaling 85.7 million shares, while the trading value rose 30 per cent to reach VND1.164 trillion (US$55.2 million).

PetroVietnam Construction Corporation (PVX) continued to lead the market in terms of volume with 14 million shares exchanged, but the price dived 7.81 per cent to settle at VND5,900.