Shares drop off after 10-year high
Shares drop off after 10-year high
Shares declined unexpectedly on Friday on the two exchanges, beating analyst forecasts of a continued rise after the VN-Index surpassed the previous ten-year high.
On the HCM Stock Exchange, the VN-Index sank for the first time in three days, edging down 0.2 per cent to close at 722.3 points. The southern index increased 0.7 per cent in the last two trades.
On the Ha Noi Stock Exchange, the HNX-Index was down 0.3 per cent to end at 90.8 points. The northern index gained 0.6 per cent in the previous two sessions.
Banks and food and beverage companies, which were the main driving force of the market in the previous sessions, lost their steam.
Except Sacombank (STB) which climbed 1.8 per cent and Nam Viet Bank (NVB) closed unchanged, seven other listed lenders slumped, including Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), Military Bank (MBB) and Asia Commercial Bank (ACB) which dropped around 1 per cent each.
Prices of bank shares have climbed around 10 per cent in the last two weeks, driving investors to capitalise on short-term profits.
Credit growth in the first three months hit a 6-year high at 2.81 per cent, according to a report by the General Statistics Office. This data indicated positive capital absorption of enterprises early in the year, thereby raising the interest income of banks.
In the food-drink sector, only Masan Group (MSN) maintained a modest rise of 1.2 per cent, other big companies such as Vinamilk (VNM), Sabeco (SAB) and Habeco (BHN) decreased 0.5-3.5 per cent.
“The market is still facing a high risk of short-term decline,” said Tran Duc Anh, a stock analyst at Bao Viet Securities Co.
In a market report yesterday, Anh said most stocks showed a signal of forming a short-term peak in the previous session and the index’s rally was mostly backed up by large-cap stocks.
“Investors should take profit when the index surpasses a peak,” he said.
On the positive side, steel stocks gained as investors speculated on the information that the Ministry of Industry and Trade has imposed an anti-dumping tax on imported coated steel from China and South Korea.
This decision is expected to help local steel manufacturers boost sales as well as profits.
The biggest listed steel firm Hoa Phat Group (HPG) increased 2 per cent. Nam Kim Steel (NKG) was up 3.2 per cent while Hoa Sen Group (HSG) and Viet-Italy Steel (VIS) rose by less than 1 per cent.
Total liquidity remained high at over 256 million shares worth VND4.3 trillion (US$188.4 million) being traded in the two markets.
