Selling pressure makes market shake
Selling pressure makes market shake
The benchmark VN Index rose sharply in the morning session but narrowed its gains because of increased profit-taking pressure during across the counter trading on Tuesday.
The VN Index on the HCM Stock Exchange (HOSE) advanced 0.04 per cent to close at 1171.73 points. The market reached a new record high, or intraday high, at 1,187 points but heavy selling pressure forced the index to decelerate in the last minutes of trading.
The Index gained 1.53 per cent to close at 1,171.22 points on Monday.
The HNX Index on the Ha Noi Stock Exchange (HNX) dropped 0.29 per cent to end at 133.29 points. It also decreased 1.62 per cent to end at 131.88 points in the previous session.
More than 305.4 million shares, worth VND8 trillion (US$354 million), were traded on the two local bourses.
Market breadth was negative with 219 gaining shares, 237 declining ones and 279 stocks ending flat.
The UPCoM Index on the Unlisted Public Company Market increased 0.28 per cent to stand at 60.20 points. The index gained 1.19 per cent to end at 60.03 points in the previous session.
Foreign investors today were net sellers of VND379.15 billion on HOSE. They concentrated on dairy firm Vinamilk (VNM) (VND175.3 billion), Vietcombank (VCB) (VND29.2 billion) and Bank for Investment and Development of Viet Nam (BID) (VND24.5 billion). In addition, they sold a net of VND56.74 billion on the HNX.
Large-cap stocks underperformed, as 17 of the 30 largest stocks by market capitalisation in the VN30 Index decreased. Some gainers among those stocks helping support the market included dairy firm Vinamilk (VNM), climbing 2.2 per cent; property developers Novaland (NVL), reaching the ceiling price and up 6.6 per cent; and Vietjet Aviation Joint Stock Company (VJC), moving up 1.9 per cent.
On the negative side, petroleum stocks continued to correct and were among those that weighed on the stock market. Laggards in the industry included PetroVietnam Gas Joint Stock Corporation (GAS), down 2.16 per cent, PetroVietnam Drilling & Well Services Corporation (PVD), losing 6.51 per cent and PetroVietnam Technical Services Corporation (PVS), dropping 8.9 per cent.
According to Bao Viet Securities (BVSC), the global stock recovery had significantly lessened the risk for a strong correction of VN-Index.
However, given the current high profit-taking pressures, the market will likely experience a slight correction amid high divergences among stock groups in the coming sessions, BVSC said.
“In the trading session tomorrow, the action of catching the bottom of the stocks from the correction last week may lead to an increase in selling pressure,” BIDV Securities Co (BSC) said in its daily report.
