Shares sink, ending four-day rally
Shares sank for the first time in the past five sessions on September 1 as investors increased selling to realise short-term cash profits.
Illustrative image (Source: VNA)The benchmark VN-Index, the measure of 310 stocks on the HCM Stock Exchange was down 0.8 percent to close at 669.2 points. It rose nearly 2.5 percent over the last four sessions.
Large-cap stocks led the downturn with 18 of the 30 largest stocks tumbling and only five maintaining slight gains.
The key shares of Vietcombank (VCB), dairy firm Vinamilk (VNM), private equity Masan Group (MSN), PV Gas (GAS), Vietinbank (CTG) and real estate giant VinGroup (VIC) took away nearly five points, or 0.8 percent, of the market.
Shares in Vietcombank extended losses to three consecutive days, lifting total losses to 8.7 percent. Others declined between 1 percent and 3 percent.
“An unexpected market correction occurred today due to selling pressure on some key stocks, and selling pressure from foreign investors,” Tran Thang Long, head of analysis at BIDV Securities Co wrote in a note.
Foreign investors remained net sellers in HCM City’s market, responsible for a net value of 187.5 billion VND (8.4 million USD). It sold a total net value of 335.5 billion VND in the last three days.
Vietcombank and Vinamilk were sold the most heavily, for a net value of 129 billion VND and 61 billion VND, respectively.
Besides blue chips, the money focused on smaller capitalisation stocks in the sectors of technology, pharmaceuticals and rubber, like the Southern Rubber Industry (CSM), furniture maker Duc Long Gia Lai Co (DLG), sugar producer Thanh Thanh Cong Tay Ninh Co (SBT) and software producer FPT Co (FPT).
“Markets can test the resistance level of 660 points, again affected by portfolio reallocation of exchange-traded funds,” Long said.
On the Hanoi Stock Exchange, the HNX-Index, a tracker of 379 stocks, inched down 0.4 percent after two rising sessions, ending at 84 points.
Liquidity slightly decrease with a total of 142 million shares worth nearly 3.3 trillion VND traded in the two markets, down 9.6 percent in volume and 5.7 percent in value from the previous day’s levels.
The local market is closed on September 2 for National Day.-VNA
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