Shares dragged down by blue-chips
Shares dragged down by blue-chips
Vietnamese shares declined on Friday as the market reversed quickly at the end of the trading session, dragged down by blue chips in banking and energy.
The benchmark VN Index on HCM Stock Exchange dropped 1.35 per cent to close at 1,157.14 points. It had risen 0.51 per cent on Thursday.
The HNX Index on Ha Noi Stock Exchange fell 1.69 per cent to end at 133.34 points, extending its downtrend from the previous 1.13 per cent decline.
More than 246 million shares, worth VND8.1 trillion (US$359 million), were traded on the two local exchanges.
Declining stocks dominated the two bourses, outnumbering gainers by 286 to 192, showing investor confidence was quite low.
Large-cap stocks underperformed as the VN30 Index lost 0.81 per cent to reach 1.134,21 points, with 21 declining stocks against nine gainers among the 30 largest stocks by market capitalisation.
Across the stock market, banking, securities, mining, retail and insurance were the worst-performing industries.
Their indices declined between 0.4 per cent and 4.1 per cent, according to vietstock.vn.
BIDV Securities JSC (BSC) said in its daily report that the minor recovery efforts from Thursday’s session were dampened by strong selling pressure in many stocks, especially the banking sector and petroleum sector.
Laggards in the sectors included Vietcombank, down 4.2 per cent, Military bank, losing 4.9 per cent, Vietinbank, decreasing 4.2 per cent, PetroVietnam Technical Services Corporation, falling 4.5 per cent and Drilling Mud Joint Stock Corporation, slumping 5.7 per cent.
At the beginning of morning session, the market showed signs of recovery due to easing of world political tensions, but the caution of investors also returned quickly.
Cash flew back to real estate stocks, especially at the end of the session, FLC Faros Construction JSC (ROS) Vingroup (VIC) and Novaland Investment Group Corporation (NVL) stayed positive despite substantial selling pressure.
BSC said that the conservatism is increasing; making the market unpredictable in the next trading days and investors should carefully observe and limit the opening of short-term positions.
Viet Dragon Securities Company (VDSC) said in its daily report that over the last few days, the market was affected by external factors, including political tension between the US and Russia. However, today’s reports stated the US is rethinking of joining the TPP.
“After all, when all these things are over, the market will be back on track as it will rely majorly on internal factors like Viet Nam’s economy and corporate earnings,” it added.
According to Bao Viet Securities Company (BVSC), although profit-taking volume is rising across the board, overall market movement is still supported by positive information of the annual general meeting (AGM) season and solid first quarter earnings results.
The market is likely to move sideways and experience divergence in the next sessions, BVSC said.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) lost 0.59 to close at 59,32 points, totaling a five-day decline of 2.17 per cent.
