VN Index drops on profit-earning
VN Index drops on profit-earning
The VN Index on the HCM Stock Exchange pulled back from a four-day increase on Thursday as shares were hit by strong investor selling to earn profits.
The benchmark stock index dropped 0.3 per cent to close at 709.35 points. It had rallied a total 1.6 per cent in the previous four sessions.
More than 198.4 million shares were exchanged on the southern bourse, worth VND3.68 trillion (US$163.9 million).
Thursday’s trading figures rose 17.4 per cent in trading volume and 9.3 per cent in trading value compared to Wednesday.
The market condition was negative, with 132 declining stocks against 112 advancing ones, while 59 stayed flat.
Leading sectors such as banks, energy firms, securities companies and property developers all declined.
Sixteen of the 30 largest stocks by market capitalisation in the VN30 basket suffered from profit-taking, including Bank for Investment and Development of Viet Nam (BID), Vietcombank (VCB), real estate corporation Vingroup (VIC) and IT group FPT Corp (FPT).
BID slid 2 per cent from a two-day gain of 3 per cent and VIC slipped 1.1 per cent after rising 4.7 per cent in the previous two sessions. VCB and FPT dropped 1 per cent and 1.5 per cent, respectively.
Other smaller companies in the VN30 basket that had made consecutive gains in the previous days, such as the two steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG), also reversed direction.
Mid-cap and penny stocks were also hit by profit-selling. Hoang Anh Gia Lai Agriculture International (HNG) edged down 0.4 per cent from a four-day jump of 13 per cent.
“The market was hit as investors increased selling in afternoon trading after they saw the VN Index rise strongly in the early session, hitting a fresh nine-year high of 717 points,” BIDV Securities Corp (BSC) said in a note.
However, Thursday’s fall was not a negative sign for the market because market trading liquidity was high, proving that investors are staying around to look for more investment opportunities, BSC said, predicting that the VN Index will rise to test the level of 720 points.
On the Ha Noi Stock Exchange, the HNX Index lost 0.8 per cent to end at 85.65 points. The northern market index closed up 0.1 per cent on Wednesday.
More than 60.7 million shares were exchanged on the northern bourse, worth VND568.5 billion.
