Stocks failed to rally over heavy sell-off

The Ho Chi Minh Stock Exchange mixed on Thursday before closing at lower note due to a sharp sell-off from speculative investors.

VN-Index, the gauge of 170 leading stocks on the exchange, opened on higher note in the first trading session of the day, but retreating soon after since investors dumped shares to take profits from previous rising days.

The index eventually dropped 12.32 points, or 2.28 percent, to close at 528.49. Trading volume was improved sharply, with more than 78 million shares worth VND3.2 trillion being traded.

Of the index’s members, 123 stock lost and 32 advanced.

Analysts said investor confidence on the bourse was going down because of foreigners’ heavy selling yesterday combined with investment fund Indochina Capital’s closure.

Foreign investors were net sellers on the HCMC exchange yesterday, selling shares worth more than VND90 billion. Indochina Capital Vietnam Holdings Limited officially announced it withdrew from Vietnam’s market, according to Thoi Bao Kinh Te Viet Nam.

According to its equities portfolio up to July 31, the fund holds 6.9 percent stake in Bao Viet Holding Co., 6.8 percent stake in Vietcombank, 5 percent in FPT, 3.8 percent in Vinamilk, 2.5 percent stake in PetroVietnam Fertilizer and Chemical Joint-Stock Co. and 2.3 percent stake in Gemadept.

Other markets in Asia, meanwhile, edged higher on Friday, underpinned by encouraging US retail sales but cautious ahead of a U.S. payrolls report, while the Aussie dollar was supported by a spike in gold prices, according to Reuters.

Chinese shares wobbled, but by mid-afternoon had extended gains from Thursday's near 5 percent surge, which came after reassuring remarks from a top securities regulator raised hopes for policy support.

The MSCI index of Asia Pacific stocks traded outside Japan was up 0.5 percent by mid-afternoon.

Shanghai's main index rose 0.7 percent after dipping into negative territory in morning trade. Signs of market stability in China and the better-than-expected US retail sales data pushed up Hong Kong's Hang Seng index 0.6 percent.

At the smaller bourse in Hanoi, the HNX-Index also headed south, losing 2.82 points, or 1.66 percent to finish at 166.92.

By Thieu Gia

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