Momentum wanes on VN-Index

Hanoi (VNA) - Shares edged down on February 9 on the HCM Stock Exchange as leading stocks lost growing momentum on the back of a lack of support information.

The VN-Index on the HCM Stock Exchange inched down 0.2 percent to close at 700.65 points. The southern market index increased marginally on February 8.

Big gainers in the previous session fell into negative territory on February 9 under profit-taking pressure.

Hoang Anh Gia Lai Group (HAG) and its agricultural arm Hoang Anh Gia Lai Agricultural (HNG) plunged 3.4 percent and 6.9 percent, respectively. HAG gained 5.4 percent in the last three trades while HNG recorded an 11-percent rise in four consecutive sessions.

Shares of steelmaker Hoa Phat Group (HPG) were also down 0.22 percent, breaking its six-session rally.

“The VN-Index has shown signs of weakening in recent sessions after a long rally before and after the Tet (Lunar New Year) break,” Tran Duc Anh, a stock analyst at Bao Viet Securities Co wrote in February 9’s market report.

“The slowing down of leading stocks is responsible for this volatility, while recent information is not strong enough to boost investor confidence.”

Local oil stocks remained in negative territory despite the recovery of global oil.

The largest listed gas company PV Gas (GAS) and PetroVietnam Drilling and Wells Service (PVD) decreased 1.9 percent and 1.2 percent, respectively.

Global oil prices rose after the US Energy Information Administration released data that gasoline stockpiles fell by 869,000 barrels, versus analyst expectations for a 1.1 million barrel increase.

The US crude WTI recouped 1.3 per cent to 52.31 USD per barrel and the Brent rose 1 percent to 55.16 USD per barrel on February 8. Their gains extended to February 9’s morning trade with the WTI going up 0.88 percent and Brent up 0.82 percent.

Many of the top 30 largest shares by market value and liquidity slumped and pulled down the market such as VinGroup (VIC), Vietcombank (VCB), BIDV (BID), FPT Corp (FPT), Masan Group (MSN) and Saigon Securities Inc (SSI).

On the Hanoi Stock Exchange, the HNX-Index rose 0.42 percent to end at 85.65 points.

According to analysts at Vietnam Investment Securities Co, investors should pay attention to the stocks promising dividends as well as 2016 positive earnings reports.

“Together with money inflows, one or two downward sessions are accumulative for the next advance,” they wrote in a market report.

Trading volume continued to decrease to 181.2 million shares, down 6.3 percent from February 8’s level but the market value rose 16.7 percent to a combined 3.5 trillion VND (154.2 million USD) in the two markets.

Foreign investors returned to be net buyers with a total value of 56 billion VND, versus net sell value of 38 billion VND on February 8.-VNA