Shares sink, ending four-day rally
Shares sink, ending four-day rally
Shares sank for the first time in the past five sessions yesterday as investors increased selling to realise short-term cash profits.
The benchmark VN-Index, the measure of 310 stocks on the HCM Stock Exchange was down 0.8 per cent to close at 669.2 points. It rose nearly 2.5 per cent over the last four sessions.
Large-cap stocks led the downturn with 18 of the 30 largest stocks tumbling and only five maintaining slight gains.
The key shares of Vietcombank (VCB), dairy firm Vinamilk (VNM), private equity Masan Group (MSN), PV Gas (GAS), Vietinbank (CTG) and real estate giant VinGroup (VIC) took away nearly five points, or 0.8 per cent, of the market.
Shares in Vietcombank extended losses to three consecutive days, lifting total losses to 8.7 per cent yesterday. Others declined between 1 per cent and 3 per cent.
"An unexpected market correction occurred today due to selling pressure on some key stocks, and selling pressure from foreign investors," Tran Thang Long, head of analysis at BIDV Securities Co wrote in a note.
Foreign investors remained net sellers in HCM City's market yesterday, responsible for a net value of VND187.5 billion (US$8.4 million). It sold a total net value of VND335.5 billion in the last three days.
Vietcombank and Vinamilk were sold the most heavily, for a net value of VND129 billion and VND61 billion, respectively.
Besides blue chips, the money focused on smaller capitalisation stocks in the sectors of technology, pharmaceuticals and rubber, like the Southern Rubber Industry (CSM), furniture maker Duc Long Gia Lai Co (DLG), sugar producer Thanh Thanh Cong Tay Ninh Co (SBT) and software producer FPT Co (FPT).
"Markets can test the resistance level of 660 points, again affected by portfolio reallocation of exchange-traded funds," Long said.
On the Ha Noi Stock Exchange, the HNX-Index, a tracker of 379 stocks, inched down 0.4 per cent after two rising sessions, ending at 84 points.
Liquidity slightly decrease with a total of 142 million shares worth nearly VND3.3 trillion traded in the two markets, down 9.6 per cent in volume and 5.7 per cent in value from Wednesday's levels.
The local market is closed today for National Independence Day.
