Stocks grow slower on profit-taking
Stocks grow slower on profit-taking
Shares rose on both local markets on Monday but market growth slowed down during the day as banks and brokerages failed to extend gains.
The benchmark VN Index on the HCM Stock Exchange edged up 0.38 per cent to close at 746.25 points. The key stock index has risen total 0.6 per cent after two days.
The HNX Index on the Ha Noi Stock Exchange inched up 0.13 per cent to end at 93.81 points. The northern market index has had a four-day rally of total 2.1 per cent.
More than 315.6 million shares were traded on the two local bourses, worth VND5.83 trillion (US$259.3 million). Trading figures on Monday were slightly up compared to last week’s daily average numbers.
The VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation, was divided into two sides with gainers balancing losers by 14 to 14 while two others remained flat.
The strongest gainers among the 14 gaining stocks on the VN30 Index included steelmaker Hoa Sen Group (HSG), Thanh Thanh Cong Tay Ninh Sugar JSC (SBT), Sacombank (STB) and Vietinbank (CTG).
HSG hit its daily trading limit of 7 per cent. The company’s chairman has registered to sell nearly 9.6 million shares. The transaction will reduce his ownership by 4.79 per cent to 8.36 per cent.
SBT surged 6.3 per cent after its M&A plan with Bien Hoa Sugar JSC (BHS) was approved by shareholders of the two companies last week. BHS also hit its daily trading limit of 7 per cent.
The other two stocks, STB and CTG, jumped 3.3 per cent and 3.4 per cent, respectively. Sacombank has delayed its annual shareholder meeting to June 30. Its restructuring plan has also been approved by the central bank.
Shares of brokerages took the leading role on the opposite side as they were hit by intraday profit-taking, especially after they made strong increases in the morning session.
The worst decliners included HCM City Securities (HCM), Sai Gon-Ha Noi Securities (SHS), Sai Gon Securities (SSI) and Bao Viet Securities (BVS).
The market began the trading week similar to last week as the growth of local stock indices was tackled by pressure from investors’ selling high-priced stocks, Sai Gon-Ha Noi Securities said in a report.
The benchmark VN Index would struggle in the range of 743 and 748 points on Tuesday, SHS said, adding that it would need a strong boost to overcome the level of 748 points and affirm its uptrend.
