Vietnam's benchmark VN-Index closed below 1,700 points for the first time in its current losing run, as selling hit Vinhomes (HoSE: VHM), other Vingroup-linked companies and energy shares, Viet Nam News reported. The index, which tracks the Ho Chi Minh Stock Exchange (HoSE), fell 6.52 points, or 0.38%, to 1,698.35 points.
The drop extended the slide to a seventh straight session. Foreign investors also kept selling on both of the country's exchanges. Losses were concentrated in a handful of heavyweight stocks. Gainers outnumbered decliners by 164 to 153, so the decline was not spread across the wider market.
Trading picked up from the previous session, with turnover rising to VND15 trillion ($580mn).
Vinhomes did the most damage, removing 3.56 points from the index. PetroVietnam Refining and Petrochemical Corporation cost 1.96 points and PV Gas cost 1.19 points. BaoViet Holdings and Sacombank each took 0.70 points off. Vingroup, LPBank and HDBank subtracted 0.64, 0.55 and 0.54 points respectively.
Gains in banks and brokerages were too small to make up the shortfall. MBBank added 1.14 points, the largest positive contribution. VPS Securities, Vietinbank, Vinpearl, FPT Corporation, Vietcombank, Techcom Securities and Ho Chi Minh Securities each added between 0.25 and 0.48 points.
Energy was the weakest sector as global oil prices fell. PetroVietnam Refining and Petrochemical Corporation shed 6.31%. PetroVietnam Technical Services Corporation lost 4.24% and PetroVietnam Transportation Corporation lost 4.25%. Petrolimex slipped 1.93%.
On the Hanoi Stock Exchange, the HNX-Index fell 5.87 points, or 2.21%, to 259.29 points.
Foreign investors were net sellers of VND685.6bn on HoSE and VND25.1bn on the Hanoi bourse.
Kirins Securities said in its latest report that the VN-Index was still falling with no clear sign of a turnaround. The firm said selling continued across several sectors and buying interest had not meaningfully recovered.
The brokerage told investors to stay cautious, limit bottom-fishing and focus on managing risk. It said holders of stocks that had broken through their risk limits could cut positions during any rebound in upcoming sessions.
Kirins Securities expects the correction to continue and said weak liquidity showed that bargain hunters had not yet returned in force. The firm said a technical bounce could occur over the next few sessions, but the index could then resume its decline.