Market corrects on profit-taking
Shares fell on the two exchanges on April 12 as investors booked short-term profits after the benchmark index set a nine-year new peak.
Illustrative photo (Photo: laodong.com.vn)Hanoi (VNA) - Shares fell on the two exchanges on April 12 as investors
booked short-term profits after the benchmark index set a nine-year new peak.
On the HCM Stock Exchange, the benchmark VN Index retreated to 725.58 points, down 0.8 percent. The key index has gained nearly 10 percent this year.
On the HCM Stock Exchange, the benchmark VN Index retreated to 725.58 points, down 0.8 percent. The key index has gained nearly 10 percent this year.
On the Hanoi Stock Exchange, the HNX Index also decreased 0.8 percent to close at 89.91 points. The northern market index has expanded more than 14 percent since 2016.
Large-cap shares fell under selling pressure when 22 of the 30 largest stocks by market value and liquidity dropped.
Losers include banks, insurers, steel and plastic manufacturers, consumer product companies, oil and gas firms and real estate developers.
Realty shares were hit hard after discrepancies in earnings reports by some real estate companies decreased investor confidence.
Net profits of Tan Tao Investment Industry Corp (ITA) shrank from 54 billion VND (2.4 million USD) to 39.2 billion VND in 2016, equivalent to a 28 percent decrease after auditing.
ITA shares suffered an eighth straight losing session on April 12, closing at about 3,000 VND a share, a loss of 26.3 percent.
Hoang Quan Consulting Trading Service Real Estate Corp (HQC) also posted lower net profit in 2016 after auditing, falling from nearly 112 billion VND to just 19.6 billion VND. HQC shares sank 5 percent in the morning trade but bounced back to the reference price of 2,340 VND a share.
Negative spillover spread to big property companies such as VinGroup (VIC), Kinh Bac City Development (KBC), Vinh Phuc Infrastructure Development (IDV) and Construction Joint Stock Company No 3 (VC3).
On the other side of the fence, the recovery of Vinamilk (VNM), Vietjet Air (VJC) and software producer FPT Corp (FPT) cushioned the market.
“Q1 earnings have gradually been reflected in stock prices and the market may see a temporary information gap,” analysts at FPT Securities Co wrote in a report.
They urged attention to movements of financial stocks as this group often reflected market trends.
Liquidity rose slightly from April 12’s figures with nearly 304 million shares worth a combined 4.9 trillion VND (roughly 215 million USD) traded in the two markets.-VNA
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