Illustrative image (Photo: VNA)
  
Hanoi (VNA) – Vietnam’s benchmark VN Index on the HCM Stock Exchange fell on June 2, dragged by weak investor confidence and sliding oil prices.

The benchmark index on the HCM Stock Exchange dropped 0.40 percent to close at 738.81 points, retreating from a gain of 0.5 percent on June 1. It posted a weekly loss of 0.6 percent.

Market trading liquidity increased from June 1’s numbers, with more than 184.5 million shares exchanged on June 2 in the southern market, worth 4.42 trillion VND (196.8 million USD).

Large-cap stocks underperformed, with 18 of the 30 largest companies by market capitalisation declining and three others ending flat.

Declining large-cap stocks included Sacombank (STB), steel makers Hoa Sen Group (HSG) and Hoa Phat Group (HPG), dairy producer Vinamilk (VNM) and FLC Faros Construction (ROS).

Among those stocks, STB lost 2 percent and VNM edged down 0.7 percent after they made gains of 1.2 percent and 1.5 percent on June 1.

ROS slumped 6.4 percent on profit-taking after it increased by a total of 4.8 percent in the previous six-day period.

Energy stocks like PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD) were pushed down as crude prices dropped.

Brent crude was down 2.4 percent to trade at 49.44 USD a barrel. The benchmark has dropped more than 5.4 percent in the last four sessions.

On the positive side, shares of brokerages recorded good gains, with Sai Gon Securities (SSI) and HCM City Securities (HCM) jumping 3.6 percent and 6.8 percent, respectively.

According to Sai Gon-Ha Noi Securities (SHS), the VN Index has ended a five-week rally, as investors made efforts to earn profits after the benchmark index jumped to its nine-year high near 750 points.

Investors have turned cautious as they wait for signals of improvement from the stock market, SHS said in its report, adding that the VN Index is now settling in the narrow range of 735-742 points, given the fact that the index has moved narrowly in this range for the last three sessions.

Meanwhile, the HNX Index on the Hanoi Stock Exchange rose 0.40 percent to end at 94.36 points. The northern market index has gained total 1.2 percent after the last three trading days and posted a weekly gain of 0.7 percent.

More than 65.7 million shares were traded on the northern bourse, worth 630.2 billion VND, an increase in both trading volume and value compared to June 1.-VNA