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Roundup: VN-Index on Vietnam's southern market plunges on heavy sell-offs

Xinhua, March 20, 2015 Adjust font size:

VN-Index, the main index of Ho Chi Minh (HCM) City bourse in southern Vietnam plunged on heavy sell-offs this week, falling to a five-week low level below 580 points.

Increasing selling pressure hit investors' sentiment and dragged the market down to a five-week low.

According to Maritime Bank Securities Company, selling pressure 's rising had driven by negative information including hikes in petrol and electricity prices, and forex rates.

In addition, the index falling below 580 points also impacted investors' psychology as they kept cautious in trading activities by standing out of the market and buying shares at low prices.

Besides, portfolio reviews by the exchange-traded funds (ETFs) this week also impacted the market movement, with investors offloading shares that the ETFs will remove from their baskets, said stock analysts.

Net selling activities by foreign investors which had lasted for more than two weeks was also fuelling domestic worries.

The VN-Index closed at 575.44 points on Friday, up 1.7 points, or 0.3 percent, from the previous trading day's close. From the previous week's close, the index lost 10.66 points, or 1.85 percent.

During the week, the index experienced two ups and three downs, posting the highest level of 581.76 points on Tuesday, and the lowest level, also the five-week low, of 573.74 points on Thursday. In comparison, it ranged between 586.1 points and 589.66 points the previous week.

About 151.536 million shares worth 3.151 trillion VND (146.88 million U.S. dollars) changed hands on the HCM City Stock Exchange (HoSE) on Friday, an increase of 79.27 percent in volume and 115. 31 percent in value as against Thursday.

According to Bao Viet Securities Company, the current market sentiment is pessimistic when the index lost the support resistance of 580-point level.

In the context that the market lacks supportive information and the recovery of the index is not quite strong, investors are advised not to hold a large portion of shares while observing closely the market movements.

Analysts from Maybank Kim Eng Security Company predicted the index's new resistance will be around 569-570 points. Endi