VN-Index falls to 720 on bank losses
VN-Index falls to 720 on bank losses
The benchmark VN-Index retreated to 720 points on Friday which represented a decline of 0.28 per cent as bank and agribusiness shares lost steam.
Five of six listed banks on the HCM Stock Exchange lost value, including banks that rose in the previous sessions like BIDV (BID), Vietinbank (CTG), Vietcombank (VCB), Sacombank (STB) and Eximbank (EIB) with decreases of 0.3-2.5 per cent.
Only Military Bank (MBB) bucked the trend with gains of 1.2 per cent.
Agribusiness like Hoang Anh Gia Lai Co (HAG) and Hoang Anh Gia Lai Agricultural Investment (HNG) and food producers like Masan Group (MSN), Vinamilk (VNM) and Kido Group (KDC) also fell.
“Negative trading today was mainly driven by profit-taking selling pressure on large-cap stocks which have gained substantially in the previous sessions such as Vinamilk and banks,” analysts at BIDV Securities Joint Stock Company (BSC) wrote in a note.
The VN-Index bouncing back to 720 points after the gauge dropped below this level in mid-session showed investors’ confidence in this level, BSC’s analysts said.
On the bright side, PetroVietnam Drilling and Wells Service (PVD) recovered following four consecutive losing sessions, rising by the maximum of 7 per cent in a single session on HCM City’s bourse to VND16,450 (US$0.72) a share.
Hoa Sen Group (HSG) was another big gainer among the top 30 shares by market value and liquidity, up 2.2 per cent to VND49,650 a share, after the steelmaking company announced a dividend rate of 50 per cent and bonus shares of 20 per cent.
On the Ha Noi Stock Exchange, the HNX-Index was up 0.21 per cent to end at 89.71 points. The northern gauge decreased 0.33 per cent on Thursday.
According to BSC’s analysts, cash flows seemed to withdraw from large-cap stocks and channel into medium- and small-cap stocks.
Most of the 10 most active stocks on the two exchanges on Friday had prices below VND10,000 a share.
Liquidity declined substantially in the two markets with a total of nearly 243 million shares worth a combined VND4.3 trillion ($189.4 million) traded, down 9.3 per cent in volume and 17.3 per cent in value compared to Thursday’s figures.
Foreign investors were mixed on Friday. They were net sellers in HCM City’s market for nearly VND33 billion but remained net buyers on the Ha Noi’s exchange with a net value of nearly VND3 billion.
