May 20: VN index ends at ytd low, HNX logs fresh all time low on panic selling

Vietnam’s stocks set fresh multiple negative records today on panic selling when VN Index posted longest losing streak since July 2009, closing at YTD low while HNX hit new life-time low after 9 day losing run.

The benchmark VN Index lost 11.98 points or 2.69% to 432.87, biggest single day loss since March 14. Volume rose 4.9% to 26.7 million shares changing hands for VND587.08 billion.

Higher volume indicated pressing pressure as sellers were very aggressive today. Turnover rose sharply indicated higher selling pressure from high-priced stocks than broad market.

The index lost 8.96% in the past 7 straight losing session and suffered 10.69% loss YTD after losing 2.04% in 2010.

Panic selling was evident today when sellers accept any prices to exit and the loss was more broad-based. The selling manner hinted margin-exposed stock liquidating which has been haunted the stock market recently. Financials from securities companies showed that they need to collect thousands of billions of dongs for their financial support services.

Heavy-weighed blue chips such as BVH, MSN, VNM, VPL, PVF, DPM, HPG, KBC were all floor losers indicating some big fishes were in the sell-side today. If anything related to ETFs, it should be noted that to replicate VN Index, ETFs don’t need just buy but they can also sell heavy-blue chips.

Analysts see opportunities for long term and cash-rich investors, one or two quarters later, the reward would be high.

Headlines showed that both monthly Hanoi and HCM City CPI slowed down in May. Hanoi CPI came out at +1.76% MoM and 19.08% YoY and HCM City respective figures are + 2.38% and +16.15% . Vietnam inflation in April was 17.51%. Late this weekend or early next week, May inflation will be released.

Media quoted source from the State Bank of Vietnam as saying that central bank was considering to either increasing the deposit cap to 15.5-16.5% and imposing a ending rate cap of 18-19 % or terminating the use of the deposit cap and applying the proposed lending cap of 18-19 %.

The SBV has issued a document today asking foreign banks and branches to strictly follow regulation on 20% credit growth limit this year.

Ho Chi Minh City-based banks bought $7.14 billion from March 1- May 15, including $575 million from individuals.

Back to the market, VN Index opened in the red as selling pressure persisted. Sellers were more aggressive and they tried to close their position at any cost, floor action was popular, loss was broad-based and went deeper as market progressed in the order-matching session, heading to 430.
Though VN Index closed off the low, it stayed deep in the negative ground.

The breadth was depressively negative, losers outweighed gainers by 179-48, 62 stocks unchanged.

SSI was the most active stock with 1.5 million shares traded, closing down 3.14% to VND18,500.

EIB was the second most active stock with 1.1 million shares traded, closing flat at VND15,000.

REE was in the third place with 0.9 million shares traded, closing up 1% to VND11,100.

STB and ITA followed in the list with 0.8 million shares traded and 0.7 million shares traded, respectively.

On the Hanoi Stock Exchange, the HNX hit fresh all time low today after 9 losing sessions in a row. HNX closed at 76.81. It’s prior historical low was 77.55 logged on Feb. 24, 2009 amid global economic recession.

Trading volume rose 19% to 25.8 million shares traded for VND315.21 billion. Losers outnumbered gainers by 216-56.

PVX was the most active stock on the bourse with 2 million shares traded, closing down 5.1% to VND11,200 on average.

VND ranked second in the list with 1.8 million shares traded, closing down 3% to VND13,100.

THV was in the third place with 1.6 million shares traded, closing down 3% at VND9,800. – Stoxplus.com

Tags: HNX, HOSE, vietnam stock, Vietnam stock market, VNindex