Stocks dip on profit-taking and oil

Hanoi (VNA) - Shares fell on the two local exchanges on March 22 as investors increased sales to earn profits from the stock market’s recently growth.

The benchmark VN Index on the HCM Stock Exchange was down 0.5 percent to close at 712.94 points. The southern market index had gained 0.8 percent in the previous two sessions.

The HNX Index on the Hanoi Stock Exchange put a dent to its six-day rally of 3.6 percent, ending 0.4 percent lower at 89.77 points.

Strong investor sales boosted market liquidity compared to March 21 with more than 334.3 million shares being traded, worth 5.74 trillion VND (255.4 million USD).

Those figures increased by 8 percent in trading volume and 16.4 percent in trading value from March 21’s levels.

The stock market was pulled down by disappointing performances among 18 of the 20 sectors in the market.

The banking sector index fell 0.3 percent. Vietinbank (CTG) and Vietcombank (VCB) dropped 0.8 percent each following a four-day gain of 3.9 percent and a two-day increase of 2.7 percent. Others such as Asia Commercial Bank (ACB) and Bank for Investment and Development of Vietnam (BID) ended flat.

The brokerage sector also ended on the decline. HCM City Securities Corp (HCM) dropped 2.3 percent after rising 1.4 percent in the previous two sessions; Saigon Securities Inc (SSI) declined 2 percent from a four-day rise of 8 percent; and VNDirect Securities Corp (VND) slashed 2.1 percent following its four-day rally of 8.4 percent.

The energy sector was pulled down by a two-day loss of global crude prices. Brent crude fell 1.4 percent to trade at 50.23 USD a barrel, down total 2.7 percent in the last two days.

In the local market, PetroVietnam Gas Corp (GAS) lost 2.6 percent, and other energy shares were down between 0.9 percent and 1.7 percent.

The stock market performed positively in the morning and the first half of the afternoon, when investment flew in local shares and pulled the market up strongly, Saigon-Hanoi Securities Corp (SHS) wrote in its daily report.

During March 22’s session, there was time when the VN Index surpassed 720 points, however, that landmark triggered profit-taking among investors and pushed the index below March 21’s closing score, SHS said.

“The 720-point level appears to be a challenging resistance level for the VN Index,” SHS said, adding that the benchmark index will be quite volatile on March 23, moving in a narrow range of 710 and 714 points.-VNA