VN shares fall as blue chips lose steam
VN shares fall as blue chips lose steam
Shares declined further yesterday afternoon as large-cap stocks lost steam under increased profit-taking pressure. Money was more focused on low value shares.
The VN-Index, the measure of 314 stocks on the HCM Stock Exchange, decreased for the first time in the last five trades, down 0.9 per cent to close at 981 points. It rallied 1.9 per cent in the last four trading days.
On the Ha Noi Stock Exchange, the HNX-Index tracking 378 stocks was down 0.6 per cent after a three-day rise, ending the session at 85 points.
Many large companies tumbled yesterday following strong gains last week, including the highest valued stocks such as dairy giant Vinamilk (VNM), Bao Viet Holdings (BVH), Vietcombank (VCB), private equity firm Masan Group (MSN), software producer FPT Corp (FPT), and PV Gas (GAS).
Insurer Bao Viet Holdings was the biggest loser with a drop of 6.3-per-cent. Others fell between 1 and 3 per cent.
Traders focused on low-valued stocks such as real estate developers FLC Group (FLC) and Sacomreal (SCR), agricultural business Hoang Anh Gia Lai Company (HAG), furniture maker Duc Long Gia Lai Group (DLG), PetroVietnam Construction (PVX), Quang Nam Rubber Investment JSC (VHG), and Sai Gon-Ha Noi Bank (SHB).
These stocks were the most active codes on the two exchanges.
According to analysts at Investment Vietnam Securities Co, some of these shares have climbed 30-50 per cent in the past month and come into the overbought zone. They forecast they would soon face downward correction in the coming sessions and money would flow back to large-cap stocks.
"With positive information, such as lending rates declining and companies soon disclosing their third-quarter earnings results, we think blue chips will rise again and this will help lift the benchmark VN-Index to 700 points," they wrote in a report.
Liquidity decreased with over 154 million shares, worth a combined VND2.2 trillion (US$99 million), traded in the two markets, down 25 per cent in both volume and value compared to Friday's levels.
Foreign investors returned to be net sellers yesterday after a strong buying session on Friday. They offloaded shares worth a net value of over VND72 billion on the two exchanges.
