Investors during a trading session on the HCM Stock Exchange. (Photo: VNA) Hanoi (VNA) - Shares slumped in both local markets on July 10 as investorconfidence dropped on negative market conditions and sliding oil prices.
Thebenchmark VN-Index on the HCM Stock Exchange fell 1.18 percent to close at766.56 points, extending its fall for a second day from a loss of 0.9 percenton July 7. The benchmark index also had the worst decline since the beginningof 2017.
TheHNX-Index on the Hanoi Stock Exchange lost 1.19 percent to end at 100.37 percent.The northern market index fell 1 percent on July 7.
Morethan 328.2 million shares were exchanged on both bourses, worth 5.26 trillionVND (233.7 million USD).
Marketconditions were negative with declining stocks outnumbering gainers by 348 to139, and 17 of the 20 sectors on the stock market ending in the negativeterritories.
Inthe VN30 Index, which tracks the movement of the 30 largest companies by marketcapitalisation, 28 stocks declined.
Theworst decliners included Sai Gon Securities Inc (SSI), BIDV (BID), MBBank (MBB)and Vietcombank (VCB), and DHG Pharmaceutical Co (DHG).
Volatilecrude prices also had negative impacts on energy stocks, pulling PetroVietnamGas (GAS) down 0.7 percent.
Accordingto market analysts and brokerage firms, the sharp decline came after both localindices continuously hit their fresh highs last week, allowing investors tolock in profits for their portfolios.
TheVN-Index last Thursday set a nine-year high of 782.65 points and the HNX-Indexclimbed to 102.60 points after a seven-day rally.
NguyenThe Minh, head of the capital market analysis at Sai Gon Securities Inc, saidinvestors thought the local indices had reached their expected profitablelevels, so they simply offloaded stocks to earn some profits.
Theselling also helped ease the margin lending condition on the market, he said,as money had been transferred from large-cap and mid-cap stocks to penny ones,putting the stock market at high risk of correction.
Thelocal market was also affected by negative trends in the global markets, suchas the volatility of oil prices and risks in the US market, he added.
Inaddition, investors started offloading stocks of companies that had beenexpected to release good earnings reports for the second quarter, Minh said.
Theywere seeking a chance to sell those stocks as they had priced in the results ofthose stocks in advance, especially after those companies experienced stronggains in their first-quarter earnings, Minh added.-VNA
Thebenchmark VN-Index on the HCM Stock Exchange fell 1.18 percent to close at766.56 points, extending its fall for a second day from a loss of 0.9 percenton July 7. The benchmark index also had the worst decline since the beginningof 2017.
TheHNX-Index on the Hanoi Stock Exchange lost 1.19 percent to end at 100.37 percent.The northern market index fell 1 percent on July 7.
Morethan 328.2 million shares were exchanged on both bourses, worth 5.26 trillionVND (233.7 million USD).
Marketconditions were negative with declining stocks outnumbering gainers by 348 to139, and 17 of the 20 sectors on the stock market ending in the negativeterritories.
Inthe VN30 Index, which tracks the movement of the 30 largest companies by marketcapitalisation, 28 stocks declined.
Theworst decliners included Sai Gon Securities Inc (SSI), BIDV (BID), MBBank (MBB)and Vietcombank (VCB), and DHG Pharmaceutical Co (DHG).
Volatilecrude prices also had negative impacts on energy stocks, pulling PetroVietnamGas (GAS) down 0.7 percent.
Accordingto market analysts and brokerage firms, the sharp decline came after both localindices continuously hit their fresh highs last week, allowing investors tolock in profits for their portfolios.
TheVN-Index last Thursday set a nine-year high of 782.65 points and the HNX-Indexclimbed to 102.60 points after a seven-day rally.
NguyenThe Minh, head of the capital market analysis at Sai Gon Securities Inc, saidinvestors thought the local indices had reached their expected profitablelevels, so they simply offloaded stocks to earn some profits.
Theselling also helped ease the margin lending condition on the market, he said,as money had been transferred from large-cap and mid-cap stocks to penny ones,putting the stock market at high risk of correction.
Thelocal market was also affected by negative trends in the global markets, suchas the volatility of oil prices and risks in the US market, he added.
Inaddition, investors started offloading stocks of companies that had beenexpected to release good earnings reports for the second quarter, Minh said.
Theywere seeking a chance to sell those stocks as they had priced in the results ofthose stocks in advance, especially after those companies experienced stronggains in their first-quarter earnings, Minh added.-VNA
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