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Banking & Finance

October 19: Decline continues on stock market

Released at: 14:15, 19/10/2018 Stock Market Watch

October 19: Decline continues on stock market

Source from TVSI

Falls all round as global uncertainties affect trading.

by My Van

Vietnam’s stock market again had a “red” session on the morning of October 19, with the VN-Index having now shed more than 50 points in less than two weeks.

With the Index falling below 950 points, many stocks are at their lowest price for a year, with investors continuing to be hesitant given the uncertainty around the world as major markets are also falling sharply.

Despite the gloomy morning, cash flows remained strong. Banking stocks attracted attention, with SHB, STB, MBB and CTG all trading more than 1 million shares prior to 10.15am.

HAG saw a spectacular reversal. At the beginning of the session it dropped to VND5,000 ($0.21) but then rebounded quickly and by 10.15am was up 1.7 per cent to VND5,180 ($0.22).

GTN did not escape the general decline in the market, falling to VND10,500 ($0.45) - VND10,700 ($0.459). Supply was quite limited, however, indicating that sellers are still waiting for other market movements.

The VN30-Index attracted the most attention. Internal ETF funds of more than VND4 trillion ($171.5 million) will restructure their portfolios in today’s session and the story of buying, selling or closing their baskets of stocks remains in question. According to estimates by Yuanta Vietnam Securities, VFMVN30 ETF will buy 592,000 GMD shares, 483,000 MSN shares, 118,000 PNJ shares, 32,000 SBT shares, 639,000 VIC shares, 375,000 VNM shares, and 2 million VPB shares. It will cut its holdings in remaining stocks.

All eyes of investors are focused on ETF funds with a scale of more than VND4 trillion, as days when they restructure are usually marked by sharp fluctuations.

By 10.15 am, the VN-Index had lost more than 14 points but was recovering after being down 17 points in the first trading hour. Nearly 200 stocks on HSX fell while only 52 gained.

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