Profit taking drags markets down
Increased selling drove down stock indices on both exchanges on June
17 as investors continued to unload shares to earn margin profits.
Increased selling drove down stock indices on both exchanges on June
17 as investors continued to unload shares to earn margin profits.
"The buying force was not strong enough to hold gains until closing time. Investors sold both blue chips and hot stocks for profit as they advanced strongly in the post rally run," analysts at FPT Securities Co wrote on the company's website.
The market measurements rose to the positive zone before returning to negative territory.
On the HCM Stock Exchange, the VN-Index gave up another 0.26 percent to close June 17 session at 578.87 points while the VN30, which tracks the top 30 shares by market value and liquidity, declined 0.44 percent to end at 598.25 points.
Speculative stocks, including FLC Group (FLC), Ocean Group (OGC) and Hong Quan Consulting Trading Service Real Estate (HQC) and HAI Agrochem (HAI), remained the most heavily-traded.
FLC topped the market with almost 20 million shares traded, but its price dropped 1.1 percent to finish at 9,000 VND a share. HAI tumbled 2.1 percent while HQC and OGC climbed 3.9 percent and 1.7 percent, respectively.
Overall liquidity declined with both market volume and value down 20 percent from June 16 levels, totalling 131.4 million shares worth almost 2 trillion VND (91.7 million USD) by the end of the session.
According to analysts at Investment Vietnam Securities Co, a slump of hot stocks and leading shares had a negative impact on investor psychology and increased downward pressure on the market.
"We think pressure is noticeable, but it's not certain that all stocks would decline steeply. Profit-taking psychology was obvious, but investors also knew the correction was mainly driven by impacts of large-cap shares," analysts wrote in a note.
They said if the market maintained stable demand, cash flows would soon return to the market.
On the Hanoi Stock Exchange, the HNX-Index also lost 1.04 percent to conclude at 86.49 points as the decliners doubled the advancers.
Trades decreased here also as the trading volume and value both fell 20 percent from the previous session, reaching 64.4 million shares worth 799 billion VND (36.7 million USD).
FIT Investment Co (FIT) continued to be the most active stock with 6.7 million shares, but the price plunged steeply 8.6 percent to settle at 13,800 VND (0.63 USD) a share.
By contrast, the foreign sectors extended their net buys by another 103 billion VND (6 million USD) worth of shares on June 17 on both markets.VNA
"The buying force was not strong enough to hold gains until closing time. Investors sold both blue chips and hot stocks for profit as they advanced strongly in the post rally run," analysts at FPT Securities Co wrote on the company's website.
The market measurements rose to the positive zone before returning to negative territory.
On the HCM Stock Exchange, the VN-Index gave up another 0.26 percent to close June 17 session at 578.87 points while the VN30, which tracks the top 30 shares by market value and liquidity, declined 0.44 percent to end at 598.25 points.
Speculative stocks, including FLC Group (FLC), Ocean Group (OGC) and Hong Quan Consulting Trading Service Real Estate (HQC) and HAI Agrochem (HAI), remained the most heavily-traded.
FLC topped the market with almost 20 million shares traded, but its price dropped 1.1 percent to finish at 9,000 VND a share. HAI tumbled 2.1 percent while HQC and OGC climbed 3.9 percent and 1.7 percent, respectively.
Overall liquidity declined with both market volume and value down 20 percent from June 16 levels, totalling 131.4 million shares worth almost 2 trillion VND (91.7 million USD) by the end of the session.
According to analysts at Investment Vietnam Securities Co, a slump of hot stocks and leading shares had a negative impact on investor psychology and increased downward pressure on the market.
"We think pressure is noticeable, but it's not certain that all stocks would decline steeply. Profit-taking psychology was obvious, but investors also knew the correction was mainly driven by impacts of large-cap shares," analysts wrote in a note.
They said if the market maintained stable demand, cash flows would soon return to the market.
On the Hanoi Stock Exchange, the HNX-Index also lost 1.04 percent to conclude at 86.49 points as the decliners doubled the advancers.
Trades decreased here also as the trading volume and value both fell 20 percent from the previous session, reaching 64.4 million shares worth 799 billion VND (36.7 million USD).
FIT Investment Co (FIT) continued to be the most active stock with 6.7 million shares, but the price plunged steeply 8.6 percent to settle at 13,800 VND (0.63 USD) a share.
By contrast, the foreign sectors extended their net buys by another 103 billion VND (6 million USD) worth of shares on June 17 on both markets.VNA
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