Caution pulls down blue chips

Hanoi (VNA) – Shares dropped further in the two local exchanges on April 24 as investors remained cautious about market conditions, pulling blue chips down.

The benchmark VN Index on the HCM Stock Exchange fell 0.42 percent to close at 709.39 points.

Vietnam’s key stock index has lost a total of 1 percent over the last three days.

The HNX Index on the Hanoi Stock Exchange declined by 0.51 percent to end at 88.42 points, erasing gains made on April 21.

Market trading liquidity also fell in comparison with the previous session. A total of more 201.4 million shares worth 3.78 trillion VND (168.2 million USD) were exchanged in the two markets.

Blue chips were the main factor that pulled the stock market down on April 24, with the number of decliners three times the number of gainers in the VN30 Index, which tracks the performance of the 30 largest firms by market capitalisation.

Among the large-cap stocks, Vietcombank (VCB), property developer Vingroup (VIC), Saigon Securities (SSI), Bank for Investment and Development of Vietnam (BID) and Binh Minh Plastic (BMP) were among the worst decliners.

Shares of the Vietnam National Petroleum Group, listed on the southern bourse under code PLX, decreased by 1 percent on analysts’ forecast that the company’s shares would suffer from profit-taking after they had increased strongly since they began trading in the over-the-counter market.

Among other declining stocks, Sacombank (STB) slumped 6.7 percent, hitting its daily trading limit, after the bank on Friday decided to re-schedule its annual shareholder meeting from April 28 to May 26 to finalise its restructuring plans.

On the opposite side, Eximbank (EIB) and energy stocks kept the market off a deeper fall.

EIB surged 6.8 percent on speculation that the bank is speeding up its divestment from Sacombank.

Eximbank now holds about 165 million shares, or 8.76 percent of the capital in Sacombank.

Energy stocks recovered from last week’s gloomy trading on the rising global oil prices. Among those stocks, PetroVietnam Gas (GAS) rose 0.9 percent and PetroVietnam Technical Services (PVS) advanced 2.5 percent.

BIDV Securities (BSC) reported that market conditions remained poor as blue chips – which often lead the market up – had been traded in the negative side.

Investor sentiment would remain low in coming sessions after the VN Index failed to keep itself over the level of 710 points; and promised to get lower as first-quarter earnings reports, the main driving factor, failed to meet investor expectations, BSC said.-VNA