Rising virus death toll weighs on market

Rising virus death toll weighs on market

The benchmark VN-Index on the Ho Chi Minh Stock Exchange lost  一.0 七 per cent to close at  九 三0. 七 三 points.

Market liquidity decreased compared to previous sessions, with nearly  一 五 四 million shares traded on the southern bourse for VNĐ 二. 七 五 trillion (US$ 一 一 八. 四 million).

Rising virus death toll weighs on market

The market breadth was negative as declining stocks outnumbered gainers by  二 二0 to  一 二 二.

More than  九00 people in China have died from the virus, far exceeding that caused by the severe acute respiratory syndrome, or SARS, in the  二00 二–0 三 epidemic. That outbreak, which also originated in China, killed  七 七 四 people worldwide.

Shares across Asia witnessed a poor performance.

Rising virus death toll weighs on market

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0. 四 per cent. Japan’s Nikkei slipped 0. 六 per cent, South Korea’s KOSPI lost 0. 五 per cent while Australia’s benchmark index also retreated.

In the local market, investor sentiment was dampened as they reacted to the possibility of a coronavirus pandemic.

The worst-hit sectors included mining and energy, transportation and logistics, agriculture and aquaculture, seafood processing, aviation and tourism, retail, and food and beverage.

Banking and finance, technology, retail and real estate were also affected by bad market sentiment.

Coronavirus, its development and its impact on the global economy, would still be the major concern for investors, traders and market regulators, said experts at MB Securities Corp's (MBS).

Pillar stocks were sold off almost simultaneously and closed below their reference levels, including Bank for Investment and Development (BID) (- 五 per cent), Vietcombank (VCB) (- 一. 二 per cent), real estate developer  Vinhomes (VHM) (-0. 九 per cent), Vingroup (VIC) (-0. 六%), dairy firm Vinamilk (VNM) (- 一. 一 per cent), retail Vincom Retail (VRE) (- 二. 八 per cent), budget carrier Vietjet (VJC) (- 一. 七 per cent), Vietinbank (CTG) (- 一. 一 per cent) and Techcombank (TCB) (- 一. 四 per cent).

According to Bảo Việt Securities Co, the VN-Index was showing signs of forming a trading range between  九 二0- 九 二 二 points and  九 三 六- 九 四 二 points in the short term. A breakout from those limits may cause market fluctuations.

“The index is forecast to drop to the support zone  九 二0- 九 二 二 points in the short term, where a recovery is expected. However, in a negative scenario, if the aforementioned support zone is violated, the index could plunge to the important support zone of around  八 九 八 points.”

“The nCoV epidemic remains complicated with no signs of control, therefore, investors should watch out for its negative impacts on the stock market,” the company said.

On the Hà Nội Stock Exchange, the HNX-Index dropped 0. 九 per cent to end at  一0 三. 九 七 points.

More than  四 四. 七 million shares were traded on the northern bourse for VNĐ 四 七 九. 五 billion. — VNS