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Banking & Finance

Market down on back of Chinese travails

Released at: 17:59, 07/01/2016 Stock Market Watch

Market down on back of Chinese travails

Few shares rise on January 7, with oil and gas also hit by tumbling crude oil prices.

by Hung Khanh

Investors reacted strongly and quickly on the morning of January 7 to news that China’s stock market was tumbling. The morning session ended with the VN-Index down 1.11 per cent, the VN-30 Index 0.97 per cent, the HNX-Index 1.25 per cent, and the HNX30-Index 1.72 per cent.

The decline continued in the afternoon session, with the VN-Index losing 1.60 per cent, the VN30-Index 1.30 per cent, the HNX-Index 1.95 per cent, and the HNX30-Index 2.77 per cent.

Unlikely yesterday, when the VN-30 Index steadied the ship, today it saw only three shares increase while 26 decreased. MSN and VIC were the only blue chips to go against the trend. MSN finished 1.97 per cent higher, with foreign investors accounting for over 70 per cent of liquidity and net buying by VND15 billion ($666,750).

Unlike MSN, VIC saw net selling by foreign investors, by VND42.4 billion ($1.88 million), but domestic investors purchased enough to see the share increase 1.05 per cent on the day.

Falls were experienced in all sectors. Oil and gas shares fell significantly as the global crude price fell further, with PVD hitting its floor of 6.88 per cent while GAS was down 4.96 per cent. No oil and gas shares rose today.

HHS, in the VN30 basket, also hit its floor. Both HHS and PVD fell due to strong selling by domestic investors. PVD ended at its lowest price since May 2013 while HHS is at its lowest since July 2013.

Among banking shares, only NVB increased, by 3.33 per cent, in HNX. BID lost 4.46 per cent, STB 1.56 per cent, MBB 1.42 per cent, and VCB 1.16 per cent.

Strong selling from investors pushed up liquidity, with the HSX seeing trade of VND2.1 trillion ($93.34 million) through order matching, the highest since last November. On HNX, VND483 billion ($21.46 million) was traded via order matching.

Foreign investors were net sellers on HSX, by VND23 billion ($1.02 million), and net buyers on HNX, by VND6 billion ($266,700).

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