VN stocks fall, investors cautious
VN stocks fall, investors cautious
Vietnamese shares retreated on both local markets yesterday as investors cautiously awaited speeches given by the US central bank on the interest rate outlook this year.
The benchmark VN Index on the HCM Stock Exchange pulled back 1.3 per cent to close trading at 568.28 points, ending a two-day gain of 0.9 per cent.
The HNX Index on the Ha Noi Stock Exchange dropped 0.8 per cent to finish trading at 79.79 points.Investor confidence fell before the US central bank's officials reported on the country's economic data and interest rate outlook, which are expected to signal more rate hikes for this year.
Low investor confidence brought down the financial sector, including banks, insurance companies and securities firms.
The insurance and securities companies that declined included insurer Bao Viet Holdings (BVH), HCM City Securities Corporation (HCM), Sai Gon Securities Corporation (SSI) and VNDirect Securities Corporation (VND).
These stocks slumped two per cent, 3.9 per cent, 2.3 per cent and 1.7 per cent, respectively.
Among banks, Vietcombank (VCB) dropped 1.9 per cent, the Bank for Investment and Development of Viet Nam (BID) dropped 1.7 per cent, and Vietinbank (CTG) lost 1.8 per cent.
Those banks also declined on lower investor confidence after Viet Nam's central bank on Monday asked them to stop signing new contracts - as of Thursday - with all low-income earners who receive loans from the housing stimulus package worth VND30 trillion (US$1.3 billion) to buy and rebuild houses, Bao Viet Securities Corporation (BVSC) wrote in its daily report.
That dragged down property developers such as FLC Group (FLC), Tan Tao Investment Industrial JSC (ITA) and Nam Long Investment Corporation (NLG), which fell 1.5 per cent, 2 per cent and 0.9 per cent.
Additionally, markets were dragged down by the energy sector as oil prices fell for a fourth trading day on forecasts that US stockpiles will increase to keep supplies at the highest level during the last eight decades.
US benchmark West Texas Intermediate (WTI) yesterday lost 1.6 per cent to trade at US$38.76 a barrel, and London-traded Brent crude was down 2.1 per cent to trade at $39.44 a barrel.
WTI and Brent crude have fallen 6.5 per cent and 5.6 per cent, respectively, in the last four trading sessions.
Among energy stocks that helped drag markets down, PetroVietnam Gas Corporation (GAS), PetroVietnam Drilling and Well Service Corporation (PVD), PetroVietnam Technical Service Corporation (PVS) and PetroVietnam Mud Drilling Corporation (PVC) slumped between 3.6 per cent and four per cent.
Both local markets traded more than 219 million shares worth nearly VND3.2 trillion ($142 million), an increase of nearly 20 per cent from Monday's trading value.
