Stocks head south but analysts expect a winning September
Stocks head south but analysts expect a winning September
Vietnam’s major stock exchange in Ho Chi Minh City remained bearish Monday as investors remained engrossed on profiting from the market’s rallies last month, analysts said.
The VN-Index of 156 leading companies and four closed-end funds listed on the Ho Chi Minh Stock Exchange closed lower by 13.95 points, or 2.55 percent, at 532.71.
But analysts attributed the decline in the stock market to profit-taking triggered by many gains last month.
The index last month rose more than 19 percent to become the world’s best performer in August.
“The stock market will decline in the first few days of the week as investors sell stakes to make profit,” Bloomberg quoted Nguyen Thanh Binh, head analyst at Hanoi-based Vietnam International Securities Co. as saying.
“It will gain slightly at the end of the week on speculation that macroeconomic stability will bolster investor confidence that the market can make further gains.
“September is the last month of the fiscal year for many foreign investment funds. Foreign investors, who hold many large caps, won't let shares plunge by selling in bulk because that will affect their portfolio. The VN-Index will advance this month because September has been a winning month for the stock market since 2004.”
Heavy selling boosted trading volume to more than 35.5 million shares worth VND1.2 trillion (US$72 million).
Of the index members, 88 fell and 58 rose.
Many large caps, such as technology giant FPT, oil drilling firm PV Drilling and dairy maker Vinamilk, were among the stocks that dropped by the daily maximum limit of 5 percent.
Petroleum transportation firm Vitacowas the most active by volume, with more than three million shares exchanging hands.
Foreign investors were back into a buying mode after selling heavily last week.
Their top five picks Monday were steel maker Hoa Phat Group, electrical appliance producer REE, brokerage SSI, insurer Bao Minh, and PetroVietnam Fertilizer and Chemical Joint Stock Company.
The Hanoi stock exchange also lost ground, with the HaSTC-Index falling 6.77 points, or 3.58 percent, to finish at 182.37.
Thanhnien
