Shares slow down as banks lose steam hinh anh 1Illustrative image (Source:
Hanoi (VNA) - Shares declined on May 23 after bank stocks, which had fueled market momentum in the previous session, tumbled unexpectedly as investors sought to earn from short margins.

The benchmark VN-Index on the HCM Stock Exchange lost value for the first time in the last three days, dropping 0.43 percent to close at 740.93 points. The southern market index increased 2.34 percent in the last two sessions.

On the Hanoi Stock Exchange, the HNX-Index inched down 0.88 percent to end at 91.90 points.

Only one of nine listed banks maintained growth on May 23, while seven fell.

Two of the three biggest listed lenders by market value and total assets including Vietcombank (VCB), Vietinbank (CTG) decreased by 0.8 percent and 2.6 percent, respectively. BIDV (BID) was the only gainer with modest growth of 0.8 percent.

The banking sector recorded an average loss of 1.72 percent, data on showed.

On May 22, the Government submitted a new resolution on bad debts to the National Assembly, which is expected to facilitate and speed up the process of settling bad debts. Many analysts predicted another rising wave for bank stocks.

This did not happen as investors increased selling on bank stocks to make quick profits.

“The market is in the correction stage after a strong rally on Monday. Declining liquidity and widening negative market breadth show investors’ caution about over-excitement of yesterday’s trade,” analysts at BIDV Securities Co wrote in a report.

These analysts predicted the VN-Index would continue to test the support threshold of 740 points and likely move around this level in the coming sessions.

The VN-Index expanded 3.2 percent this month and 11.4 percent this year.

According to the Vietnam Investment Securities Co, many stocks have risen excessively in the short term which lifted the VN-Index to a 10-year peak and surpassed its real value. The brokerage firm said this upward momentum was pushed up by high leverages and cautioned it could create pressure of massive selling when the market corrected down.

On the positive side, growth of large-cap shares such as dairy giant Vinamilk (0.5 percent), local brewer Sabeco (0.8 percent) and the largest mobile phone retailer Mobile World Group (0.4 percent) cushioned the market.

Liquidity declined with a total of 327.6 million shares worth a combined 5.4 trillion VND (roughly 240 million USD) traded in the two markets, down 10.4 percent in volume and 21.7 percent in value compared to the previous session’s figures.

Foreign investors continued to comb local shares but their net buy value decreased by a substantial 72 percent from the previous session, reaching 135 billion VND in the two markets.-VNA