Liquidity drains due to over caution

Vietnam’s benchmark VN-Index slumped drastically on April 4 as sell-side dumped shares heavily while buy-side were over cautious, causing liquidity to drain.

Shares of 305 companies and five mutual funds listed on the Ho Chi Minh City Stock Exchange dropped 1.35 per cent, or 6 points, to close at 439.77 points, with 66 gainers, 191 losers, and 53 stocks remaining unchanged.

Trading on the city bourse dropped by 15.26 per cent in volume, and 21.45 per cent in value over the previous trading session as 50.71 million shares changed hands at a total value of VND652.53 billion.

Sacom Development & Investment Corporation (SAM) won the spot of most active share in volume with 2.98 million shares changing hands.

Refrigeration Electrical Engineering Corporation (REE) followed with 2.54 million shares.

Military Commercial Joint Stock Bank (MBB) ranked third with 2.46 million shares traded.

Mien Dong Joint Stock Company (MDG) plummeted 15 per cent to close at VND5,100.

Cadovimex Seafood Import-Export & Processing Joint Stock Company (CAD) crashed 10 per cent to close at VND900.

Hoang Long Group (HLG) and Mien Trung Petroleum Construction Joint Stock Company (PXM) both discharged 5 per cent to close at VND9,500, and VND5,700 respectively.

Vietnam Active Fund (VFMVFA), Bibica Corporation (BBC), and Thuan An Wood Processing Joint Stock Company (GTA) all surged 5 per cent to close at VND6,300, VND18,900, and VND8,400 respectively.

Tuong An Vegetable Oil Joint Stock Company (TAC) rallied 4.93 per cent to close at VND31,900.

Southern Seed Corporation (SSC) emerged 4.75 per cent to close at VND35,300.

The VN30 Index - a free-float adjusted, market cap-weighted index of 30 stocks with the highest market value and liquidity on the exchange – declined 5.49 points, or 1.09 per cent, to end at 500.28. Among its 30 members, 2 stocks advanced, 24 retreated and 4 remained unmoved.

Hanoi’s HNX-Index of the smaller bourse in the north nosedived 1.66 per cent, or 1.24 points, to close at 73.25 points, with 60 winners, 213 losers, and 50 stocks treading water. More than 79.21 million shares changed hands at a total value of VND655.61 billion.

Meanwhile, the UPCoM-Index of unlisted shares inched up 0.03 per cent, or 0.01 points, to close at 35.1 points. A total of 640,890 shares changed hands at VND4.02 billion.

By Thuy Doan

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