VN Index down on the back of blue chips

Hanoi (VNS/VNA) – Vietnam’s benchmark VN Index remained
fragile on August 21, losing its positive momentum as investors remained
cautious over the current market downtrend.

The benchmark index on the Ho Chi Minh Stock Exchange closed
almost flat at 768.79 points. It finished last trading week at 768.97 points.

Nearly 169.7 million shares were traded on the southern bourse,
worth 3.34 trillion VND (148.7 million USD).

August 21’s trading volume was 13.5 percent lower than that of August
18 while trading value increased slightly.

Large-cap stocks were to blame for pulling the main exchange down
on August 21 as half of the 30 largest companies by market capitalisation
declined, causing the VN30 Index to fall nearly 0.1 percent.

Decliners included freshly-listing VPBank (VPB), steel producer Hoa
Phat Group (HPG), insurance-finance group Bao Viet Holdings (BVH) and property
developer Novaland (NVL).

Shares of brokerage firms were also negative. An Phat Securities
Co (APG) was the only rising securities stock, which gained 0.3 percent while
others saw their values decrease, including BIDV Securities (BSI), HCM City
Securities (HCM) and Vietinbank Securities (CTS).

Foreign investors remaining net sellers also worsened market
sentiment, posting a net sell value of 58.6 billion VND, an increase of nearly
300 percent from August 18.

According to securities firms, investor confidence has remained
low over recent weeks as the stock market had performed weaker than it had in
the first seven months of the year.

Sai Gon-Hanoi Securities Co (SHS) wrote in its daily report that
the VN Index recorded its sixth up-and-down session on August 21 with declining
trading liquidity.

“That shows a large number of investors were standing by and
observing the market with caution because the market is becoming weaker than it
was in the previous seven months.”

While the VN Index has failed to surpass the level of 770 points,
it has also remained below its upward trend line that was established in April
and signals negative trading sessions ahead, Bao Viet Securities (BVSC) said in
its note.

The market conditions were negative as trading liquidity remained
comparatively lower than the average of the previous 21 trading days while
declining stocks outnumbered gaining ones, proving that investor sentiment was
weak in general, BVSC said.

Therefore, BVSC said the main market trend in the next few
sessions would be negative while SHS said the VN Index would move narrowly
between 762 points and 778 points.

On the Hanoi Stock Exchange, the HNX Index added 0.30 percent to
end at 101.13 points with nearly 46 million shares being exchanged, worth 594
billion VND.-VNA

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