Aug 24: Vietnam shares extend loss, VN index breaks down 400 threshold

Vietnamese stocks continued to close down today as investors sold the August CPI news amid uncertainty of gold market and dollar price hike

The benchmark VN Index lost 4.6 points or 1.14% to 396.68. Volume fell 8.24% to 27.5 million shares worth VND477 billion including 2.2 million shares worth VND703 billion changed hands in the put-through deals.

Vietnam August CPI came out at 0.93%, lowest MoM increase in 11 months, but the annualized inflation continued to stay very high at 23.02. The news was in line with market expectation and caused no surprise, which traders treated as an exit excuse.

The Prime Minister Nguyen Tan Dung earlier this week said that Vietnam government prioritized “inflation curbing”, stabilizing macro economy and ensuring social security.

In policy move, the central bank adjusted down the dong exchange rate by VND10 to VND20,628 a dollar, a second move in August, extending the dong weakening by VND20 in August or 0.97%. Banks raised dollar offer to new ceiling of VND20,834 and dollar bid to VND20,830. Dollar in black market was quoted at VND20,990-VND21,030 for bid and ask, respectively.

The governor admitted that the dong is under a certain pressure on gold market volatility. Analysts say local gold premium could result in dollar outflows.

Gold prices plunged today to VND47.5 million/tael as of 14:00 Hanoi time, following global market plummet overnight, however, it is still traded at $45/ounce premium to global market. In an unprecedented move, local big gold traders sold an estimated of 18,000 tael of gold yesterday in an effort to reduce local premium.

The Ministry of Industry and Trade has issued Cirrular 31 regulating that EVN can adjust electricity prices every 3 months based on input factors. If input factors rose by 5%, EVN will be allowed to raise electricity price by 5% but if input factors rose more than 5%, the Ministry will appraise within 10 days before proposing to the Prime Minister for approval.

Back to the market, VN Index opened in the green with 0.8 million shares traded, just half of yesterday ATO volume. Caution was evident in the market, the green color was seen in just 30 minutes before sellers lost patience and VN Index fell to the negative territory. The selling pressure rose towards the end of the trading session as heavy weighs such as BVH, CTG, VIC fell sharply, others blue chips fell to the negative ground.

The breath today was negative, among 300 listed firms on HOSE, losers outweighed gainers by 137 -75 and 70 stocks unchanged 18 stocks untraded. As many as 33 stocks fell to the floor while 16 issues hit the ceiling, 5% each side. Among top 10 market caps, 2 gained, 1 unchanged, 7 lost.

Property stocks could not hold steam after a strong day yesterday.

SSI was the most active stock with 1.88 million shares traded, closing down 1.58% to VND18,700. This speculative and hot share saw its prices fell gradually as market progressed and closed at the low of the day with over 333,000 shares changed hands at VND18,700. There was one positive thing that outstanding bids were higher than outstanding offers.

HQC was in the second place with 1.49 million shares traded, closing up 4.35% to VND12,000. This property share had some footing today after a string of floor losing in the previous weeks.

REE ranked third with 1.2 million shares traded, closing down 2.63% to VND11,100.

EIB followed in the list with 0.96 million shares traded, closing down 0.67% to VND14,900.

LCG was in the last in the top 5 active list with 0.9 million shares traded, closing down 3.7% to VND13,000.

On the Hanoi Stock Exchange, the HNX closed down 0.35 point or 0.5% to 69.08. Trading volume fell 24.1% to 37.74 million shares traded for VND426.54 billion of which 0.66 million shares worth VND10.28 billion were changed hands in put-through deals.

Market breadth was negative with 99 gainers, 127 losers and 83 flat issues and 77 untraded. Among top 10 market cap stocks, 1 advanced, 9 fell.

KLS was the most active stock with nearly 7.3 million shares traded, closing down 0.9% to VND11,700 on average.

VND was in the second place with 5 million shares traded, closing unchanged at VND11,400 on average.

PVX ranked third in the list with 3.6 million shares traded, closing down 0.9% to VND11,500 on average. – Stoxplus.com

Tags: vietnam stock, Vietnam stock market, VNindex