Profit taking pushes markets into red

Shares on both exchanges continued to fall during the October 28 session.
Shares on both exchanges continued to fall during the October 28 session.

On the HCM City Stock Exchange, the VN-Index decreased 0.86 percent to close at 496.46 points.

The VN 30, which tracks the city’s top 30 shares, slid 0.8 percent to 555.95 points.

Among the blue chip, only Becamex Infrastructure Development (IJC) and PetroVietnam Transportation (PVT) manged to add value. Five others finished the session unchanged.

Trading value on the bourse reached VND 1.36 trillion (64.1 million USD), increasing 36 percent from last Friday. Trading volume also rose to 73.7 million shares.

According to Bao Viet Securities Co analyst Nguyen Xuan Binh, the VN-Index was still testing the resistance level of 505 points. “This is a very important mark to identify the index’s next trend,” he said.

He suggested that after the October 28 profit taking, investors should not buy immediately. “These are two buying positions at 490-491 points and 485-486 pints.”

On the Hanoi Stock Exchange, the HNX-Index shed almost 0.7 percent to 61.41 points.

The value of trades dropped 11.6 percent to reach 241.8 billion VND (11.4 million USD) as 27.15 million shares changed hands.

The HNX30, representing the largest shares in terms of capitalisation and liquidity, also fell 0.66 percent to 114.23 points.

After last week’s buying chain, foreign investors on October 28 turned to be net sellers in HCM City by nearly 24 billion VND (1.1 million USD). However, they remained net buyers in Hanoi by more than 5 billion VND (235.800 USD).

Trading this week determined not only a short-term trend but also a medium-term trend. Binh said: “Therefore, investors may want to be cautious in trading and wait for further signals.”

Opportunities might appear by the end of the year, according to HCM City Securities Co’s chief executive Fiachara MacCana, who predicted the VN-Index could rally to 550 points in December, increasing around 10 percent.-VNA

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