Profit-taking slows surging shares
Profit-taking slows surging shares
The recent share surge on both national stock exchanges slowed significantly January 29 as investors sought to cash in on recent gains.
On the HCM City bourse, the VN-Index added just 0.9 per cent from Monday's close to reach 484.01 points.
The rally narrowed as the index faced resistance levels due to a higher pressure to sell.
Trading value dropped 18.4 per cent over Monday's level to VND1.33 trillion (US$63.3 million) on a volume of 88.1 million shares.
Shares tracked by the VN30 enjoyed mixed results, but the index managed to rise 1.24 per cent to stand at 569.60 points. Nearly two-thirds of the 30 leading blue chips closed in the green.
Most notable was Eximbank (EIB), which jumped 3 per cent after information emerged about its merger deal with Sacombank (STB) signed late yesterday. EIB hit its daily increase limit for several minutes but failed to retain due to a rise in investor selling. It saw 9.3 million units change hands yesterday, becoming the second most active code after property developer Tan Tao (ITA) with over 10 million.
STB also inched up 0.9 per cent on the back of the news.
On the Ha Noi Stock Exchange, the HNX-Index reached 62.99 points, representing a 0.75 per cent increase. The northern exchange's index was also stalled by profit-taking and losers overwhelmed gainers by 119-106.
Market value fell by nearly VND100 billion ($4.7 million) compared to the previous session to VND654.4 billion ($31.1 million), while over 82 million shares were traded.
The HNX30, representing the northern bourse's top shares, edged up 1.17 per cent to 123.38 points.
Foreign investors boosted their buys yesterday, with the combined margin worth VND253 billion ($12 million) on both exchanges.
"In the short term, shares will struggle around the current prices, but the possibility of sharp declines remains low," said BIDV Securities Co analyst Hoang Anh Tuan.
Meanwhile, in the medium term, the rebound would be supported by foreign investors, he added. "However, the recovery will not be significant."
Government bonds were successfully sold yesterday, with VND8.51 trillion ($405.2 million) mobilised. Bond yields for three terms of two years, three years and ten years ranged between 8.6-9.15 per cent.
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