Market corrects on profit-taking

Apr 13th at 10:19
13-04-2017 10:19:23+07:00

Market corrects on profit-taking

Shares fell on the two exchanges on Wednesday as investors booked short-term profits after the benchmark index set a nine-year new peak.

 

On the HCM Stock Exchange, the benchmark VN Index retreated to 725.58 points, down 0.8 per cent. The key index has gained nearly 10 per cent this year.

On the Ha Noi Stock Exchange, the HNX Index also decreased 0.8 per cent to close at 89.91 points. The northern market index has expanded more than 14 per cent since 2016.

Large-cap shares fell under selling pressure when 22 of the 30 largest stocks by market value and liquidity dropped.

Losers include banks, insurers, steel and plastic manufacturers, consumer product companies, oil and gas firms and real estate developers.

Realty shares were hit hard after discrepancies in earnings reports by some real estate companies decreased investor confidence.

Net profits of Tan Tao Investment Industry Corp (ITA) shrank from VND54 billion (US$2.4 million) to VND39.2 billion in 2016, equivalent to a 28 per cent decrease after auditing.

ITA shares suffered an eighth straight losing session on Wednesday, closing at about VND3,000 a share, a loss of 26.3 per cent.

Hoang Quan Consulting Trading Service Real Estate Corp (HQC) also posted lower net profit in 2016 after auditing, falling from nearly VND112 billion to just VND19.6 billion. HQC shares sank 5 per cent in the morning trade but bounced back to the reference price of VND2,340 a share.

Negative spillover spread to big property companies such as VinGroup (VIC), Kinh Bac City Development (KBC), Vinh Phuc Infrastructure Development (IDV) and Construction Joint Stock Company No 3 (VC3).

On the other side of the fence, the recovery of Vinamilk (VNM), Vietjet Air (VJC) and software producer FPT Corp (FPT) cushioned the market.

“Q1 earnings have gradually been reflected in stock prices and the market may see a temporary information gap,” analysts at FPT Securities Co wrote in a report.

They urged attention to movements of financial stocks as this group often reflected market trends.

Liquidity rose slightly from Tuesday’s figures with nearly 304 million shares worth a combined VND4.9 trillion (roughly $215 million) traded in the two markets.

bizhub



NEWS SAME CATEGORY

Foreign cap to be focused at annual shareholder meetings

A number of listed companies--especially those whose capital structures have run out of space for foreign investment--will discuss raising foreign ownership at...

Markets slump on investor caution

Shares edged down on Wednesday morning as many major large-cap stocks lost value on rising investor caution about a correction.

VN-Index sets nine-year record

The VN-Index closed at 731.3 points yesterday, up 0.2 per cent over Monday’s level and a record high since February 20, 2008. Shares rose on both national...

March: Record new foreign investors granted trading codes

The Vietnam Securities Depository (VSD) in March granted a total of 228 securities trading codes to foreign investors, of which 188 were individuals and 40 were...

Growth slows on mixed performance of large-cap stocks

Shares edged up on Tuesday morning, but the mixed performance of large-cap stocks restrained market growth.

Shares slow on investor caution

Shares grew at a slower pace on Monday on the two stock exchanges as investors displayed caution ahead of the annual shareholder meetings of big companies this...

Shares open new week’s trade in positive territory

Shares advanced on the two exchanges on Monday morning, driven by the growth of financial and real estate companies.

Stocks set to rise on first quarter hopes

Shares will continue to rise this week as investor sentiment remains positive, analysts say, driven by expectations that good earnings reports will be released in...

Oil price increases help pull VN Index up

Viet Nam’s benchmark VN Index closed up on Friday, boosted by the energy sector on positive movement of oil prices.

Shares remain negative after holiday

Shares closed in negative territory on Friday morning after the national holiday on Thursday as investors were cautious about current market conditions.

TRENDING


MOST READ


Back To Top