VN-Index sink for a second day
VN-Index sink for a second day
Many heavyweight stocks declined towards the end of the Wednesday’s session, driving down the Ho Chi Minh Stock Exchange’s VN-Index for a second day.
Viet Nam’s benchmark index closed 0.11 per cent down at 1,009.61 points.
Banking stocks, which were the market momentum in the morning, retreated in the afternoon under increased selling pressure.
The Big Three (three biggest banks by total assets on the stock market) lost all morning gains and ended as losers by the end of the session. Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) all lost by a little under 1 per cent.
The exception was Techcombank (TCB) which maintained growth of more than 3 per cent, other banks saw negligible gains.
After a rally, oil stocks experienced a slump on Wednesday despite positive development on the global oil market. Major companies including PV Gas (GAS), Petrolimex (PLX), PetroVietnam Drilling and Wells Service (PVD) and PetroVietnam Technical Services (PVS) all lost value.
On the global markets, Brent crude hit its highest since November 10, 2014 at US$82.55 per barrel, extending its gain to fifth consecutive quarterly increase. Oil prices are expected to continue to increase on concerns of tight supply on US sanctions on Iran’s oil exports.
On the other end of spectrum, investors paid higher attention to shares of manufacturing companies. Big stocks such as Petrovietnam Fertiliser & Chemicals (DPM), Binh Minh Plastic (BMP), DHG Pharmaceutical (DHG), Hoa Sen Group (HSG) and Refrigeration Electrical Engineering (REE) all rallied.
DPM climbed 5.4 per cent while the others rose by more than 2 per cent each.
Foreign investors concluded as net buyers for three sessions in a row, combing shares worth net value of nearly VND30 billion on Wednesday, lifting the three-day buy value to VND179 billion.
According to BIDV Securities Co (BSC), the world stock markets continued to go up despite the US President Donald Trump’s 10-per-cent tax levy on Chinese imports coming into effect. This showed the investor has prepared for this.
However, they have warned the impact of the US Federal Reserve (Fed)’s interest hike on the market.
“In view of the BSC, the market will continue to be adjusted in the context that Fed will announce the result of raising interest rates today. Investors should consider limiting trading during this period,” analysts wrote in the daily report.
On the Ha Noi Stock Exchange, the HNX-Index edged up 0.05 per cent to close at 115.58 points.
A total of 324.6 million shares worth combined VND6 trillion ($259.4 million) were traded on the two stock exchanges, up 9 per cent in volume and 3.4 per cent in value compared to Tuesday’s figures.
