Optimism dashed as shares falter
Optimism dashed as shares falter
National stocks tumbled during yesterday's session after Monday's gains, following a further increase in H Noi's consumer price index.
The city's CPI in October rose 0.57 per cent over September due to a major hike in food prices.
On the HCM City Stock Exchange, the VN-Index lost 0.2 per cent to close at 500.57 points. The index has been fluctuating at around 500 points for four consecutive sessions, showing that pressure to sell remains high.
Bao Viet Securities Co analyst Nguyen Xun Binh said in a note that the resistance of 503-505 points was a major challenge to the index.
Speculative stocks had lost their attraction after a period of gains, he added.
"However, if the VN-Index can succeed at its resistance level, investors may want to hold on to shares for medium-term profit."
The VN30, composed of the city's 30 largest stocks in terms of capitalisation and liquidity, also shed 0.17 per cent to close at 560.36 points.
Most blue chips retreated, and only HCM City Infrastructure Investment (CII), steelmaker Hia Pht (HPG), PetroVietnam General Services (PET), Refrigeration Electric Engineering (REE), Sacombank (STB), property giant Vingroup (VIC) and Vinh Son-Song Hinh Hydropower (VSH) posted gains.
Trading value declined by 33 per cent compared to Monday, reaching VND1 trillion (US$47.1 million) on a volume of around 75 million shares.
On the Ha Noi Stock Exchange, the HNX-Index slid almost 0.5 per cent to 61.66 points on a total turnover of VND254.1 billion ($5.5 million), dropping 31.7 per cent over the previous session.
The HNX30, tracking the northern exchange's 30 big-hitters, also fell more than 0.8 per cent to stand at 114.99 points.
Foreign investors continued to be net buyers on both bourses, with a combined margin of VND23.2 billion ($1.1 million).
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