VN stocks down after strong gains
VN stocks down after strong gains
Vietnamese shares fell yesterday as investors sought profits from recent gains after the markets increased strongly in recent weeks.
The benchmark VN Index on the HCM Stock Exchange dropped 0.4 per cent to finish at 658.68 points. The southern market index gained 2.9 per cent during the week, beating previous forecasts.
The HNX Index on the Ha Noi Stock Exchange retreated 0.7 per cent to close at 87.57 points from a five-day rally of 4.1 per cent. The northern market index rose 2.8 per cent from the previous week.
Investors tried to take profits in blue chips that had increased in the previous sessions, such as banks and securities firms.
Among banks, Sai Gon-Ha Noi Bank (SHB) fell 1.6 per cent from a three-day gain of 4.9 per cent. Two other large-cap banks, Vietinbank (CTG) and the Bank for Investment and Development of Viet Nam (BID), edged down 0.6 per cent each.
In the brokerage sector, HCM City Securities Corp (HCM) declined by 0.3 per cent after it jumped 12.7 per cent in the previous five days, and VNDirect Securities Corp (VND) slid 1.5 per cent after it surged one-fifth since June 24.
In the energy sector, PetroVietnam Gas Corp (GAS) slipped 1.5 per cent after rising 12.7 per cent in the previous nine sessions, PetroVietnam Transportation Corp (PVT) was down 1.3 per cent from a two-day gain of 8 per cent.
Insurer Bao Viet Holdings (BVH) pulled back 3.2 per cent after it had jumped 6.8 per cent in the previous five trading days, and BIDV Insurance Corp (BIC) edged down 0.8 per cent from a two-day increase of 5.5 per cent.
Building material producers such as Tien Phong Plastic JSC (NTP), steel producer Hoa Phat Group (HPG), stone producer Vicostone JSC (VCS), and construction firms like HCM City Infrastructure Investment JSC (CII) and Hia Binh Construction and Real Estate Corp (HBC) also suffered from profit-taking. These stocks fell between 0.2 per cent and 4.2 per cent.
Yesterday, Viet Nam's central bank cut its daily reference mid-point rate by VND7 to VND21,862 for a US dollar. Local banks were able to trade the Vietnamese dong and the dollar within a trading band of 3 per cent on either side of the mid-point rate.
Market trading liquidity remained high yesterday. Investors exchanged 210.5 million shares on both local exchanges, worth VND4.27 trillion (US$190 million), a slight increase from Thursday's trading value.
