Shares flat on profit-selling

Shares flat on profit-selling hinh anh 1

Investors sit in front of the screen at the ACB Securities Ltd. Co. (Photo: VNA)

Hanoi (VNA) - Vietnamese shares were almost flat in both local markets on June 15 as energy firms, banks and other leading companies suffered from investor profit-hunting.

The benchmark VN-Index on the HCM Stock Exchange closed down 0.03 percent at 760.57 points, reversing from a three-day rally of 1.5 percent.

The HNX-Index on the Hanoi Stock Exchange inched down 0.11 percent to end at 97.78 points. The northern market index retreated from a two-day increase of 1.1 percent.

Nearly 240 million shares were traded on both bourses, worth 4.57 trillion VND (203.2 million USD) – a daily drop of 7.5 percent in volume and 7.2 percent in value.

The stock market was driven down as shares of FLC Faros Construction (ROS), top lenders like Asia Commercial Bank (ACB), Sacombank (STB) and BIDV (BID), and brokerage firms were hit by profit-taking.

ROS suffered from a daily decline limit of 7 percent, extending its decline to a total 14 per cent for a second day.

Bank stocks like ACB, STB and BID stepped back after having risen in the previous two and three sessions, falling between 1 and 1.8 percent.

The largest brokerages, such as Saigon Securities Inc (SSI) and VNDirect Securities (VND), ended on negative notes while others, such as Bao Viet Securities (BVS) and MB Securities (MBS), remained unchanged.

In addition, energy stocks were brought down by a steep fall of oil prices after the US Federal Reserve raised its interest rates for the second time in 2017, by 0.25 percentage points, to an annual 1-1.25 percent. The US central bank is expected to make one more rate hike in September.

According to analysts and brokerage companies, the latest rate increase does not pose any risk to the domestic stock market as investors have prepared for it. Analysts also said foreign investment in Vietnam’s securities market will not be affected by the US rate hike.

Foreign investors posted a net buy value of 270 billion VND on June 15, the same as on June 14 and a big raise compared to an average 35-40 billion VND in each of the three sessions before June 15.

Bui Nguyen Khoa at BIDV Securities Corp (BSC) said the US rate hike was not the reason for the stock decline. It is simply a matter of investors seeking to cash in on their investments, he said.-VNA

VNA

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