The VN-Index suffered its biggest one-day loss in more than two months as investors sold the market’s largest companies.
The utilities (-4.3%) and oil & gas (-3.0%) sectors, led by GAS (-4.8%) PVD (-3.0%) and PVS (-2.8%), dropped amid a slump in global crude oil prices over the last two trading days. HPG (-4.6%), which has fallen 16% over eight straight sessions after surging 117% from January 18 to September 28, joined HSG (-4.4%), NKG (-4.1%) and SMC (-7.0%) in a steel sector sell-off as the market becomes anxious on news big expansion commitments from HPG and HSG and the possibility of excess capacity (see our note below). Plastics firms, including BMP (-2.0%), NTP (-3.7%), DNP (-5.0%) and VKC (-5.3%), also had a rough day. The short-term technical bias of the VN-30 is negative while that of the broader VN-Index is neutral, with mid-term support in the 660-665 range.
Combined trading value in HCMC and Hanoi fell 17% to USD125 million today while foreigners net sold a combined USD0.9 million on both bourses.