Profit-earning hits VN Index for 2nd day
Profit-earning hits VN Index for 2nd day
The VN Index on the HCM Stock Exchange extended losses for a second session yesterday as large-cap stocks remained negative on investors’ profit-earning.
The benchmark stock index inched down 0.2 per cent to close at 707.83 points, totaling a two-day loss of 0.5 per cent.
After three gaining sessions and two declining ones this week, the southern market index closed up 0.6 per cent compared to last week.
Market liquidity declined from Thursday’s levels with more than 166 million shares being traded, worth VND3.54 trillion (US$157.6 million).
Half of the stocks in the VN30 basket, which tracks the performance of the 30 largest stocks by market capitalisation and trading liquidity, were down.
Those included dairy producer Vinamilk (VNM), brewer Sabeco (SAB), Vietcombank (VCB), Vietinbank (CTG) and PetroVietnam Gas Corp (GAS).
SAB fell 0.3 per cent, VCB dropped 0.8 per cent, CTG decreased by 2.1 per cent and GAS edged down 0.7 per cent, VNM 1.5 per cent and the market also saw foreign investors offload their stake in the largest dairy producer after net-buy the stock in 28 consecutive days.
Steelmakers were also hit by profit-earning. Hoa Phat Group (HPG) lost 0.9 per cent and Hoa Sen Group (HSG) was down 0.1 per cent.
“The second-day fall of the VN Index came after the benchmark index conquered the resistance level of 710 points on Wednesday, triggering a short-term profit-earning from investors,” BIDV Securities Corp (BSC) said in a note.
The money was directed from large-cap stocks like VNM and VCB to other stocks in different sectors as investors were waiting for more attractive investment opportunities, BSC said.
“Cautious investor sentiment also lowered market trading liquidity compared to Thursday, as investors were waiting for the chance to buy stocks at lower prices.”
On the opposite side, some stocks struggled to maintain their positive runs. For example, real estate and agriculture group Hoang Anh Gia Lai (HAG) closed up 2.7 per cent, reversing from the negative dimension in the morning.
On the Ha Noi Stock Exchange, the HNX Index finished up 0.3 per cent at 85.88 points following a drop of 0.8 per cent on Thursday.
The northern market ended this week 0.2 per cent lower than last week’s closing level. Nearly 48.9 million shares were traded on the northern bourse, worth VND445 billion.
