Shares fall as blue chips lose steam
Shares declined further on October 17 afternoon as large-cap stocks lost steam under increased profit-taking pressure. Money was more focused on low value shares.
Shares declined further yesterday afternoon as large-cap stocks lost steam under increased profit-taking pressure (Photo: VNA)Hanoi (VNA) - Shares declined further on October 17 afternoon as large-cap stocks lost steam under increased profit-taking pressure. Money was more focused on low value shares.
The VN-Index, the measure of 314 stocks on the HCM Stock Exchange, decreased for the first time in the last five trades, down 0.9 percent to close at 981 points. It rallied 1.9 percent in the last four trading days.
On the Hanoi Stock Exchange, the HNX-Index tracking 378 stocks was down 0.6 percent after a three-day rise, ending the session at 85 points.
Many large companies tumbled yesterday following strong gains last week, including the highest valued stocks such as dairy giant Vinamilk (VNM), Bao Viet Holdings (BVH), Vietcombank (VCB), private equity firm Masan Group (MSN), software producer FPT Corp (FPT), and PV Gas (GAS).
Insurer Bao Viet Holdings was the biggest loser with a drop of 6.3 percent. Others fell between 1 and 3 percent.
Traders focused on low-valued stocks such as real estate developers FLC Group (FLC) and Sacomreal (SCR), agricultural business Hoang Anh Gia Lai Company (HAG), furniture maker Duc Long Gia Lai Group (DLG), PetroVietnam Construction (PVX), Quang Nam Rubber Investment JSC (VHG), and Sai Gon-Hanoi Bank (SHB).
These stocks were the most active codes on the two exchanges.
According to analysts at Investment Vietnam Securities Co, some of these shares have climbed 30-50 percent in the past month and come into the overbought zone. They forecast they would soon face downward correction in the coming sessions and money would flow back to large-cap stocks.
“With positive information, such as lending rates declining and companies soon disclosing their third-quarter earnings results, we think blue chips will rise again and this will help lift the benchmark VN-Index to 700 points,” they wrote in a report.
Liquidity decreased with over 154 million shares, worth a combined 2.2 trillion VND (99 million USD), traded in the two markets, down 25 percent in both volume and value compared to the October 14 levels.
Foreign investors returned to be net sellers on October 17 after a strong buying session on the previous session. They offloaded shares worth a net value of over 72 billion VND on the two exchanges.-VNA
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