VN Index inches upward slowly

Hanoi (VNA) - Vietnam’s key VN Index inched up on May 11 as investors sought short-term profits in recently-gaining stocks.

The benchmark index on the HCM Stock Exchange closed up 0.09 percent at 724.99 points. The index has increased by a total 0.85 percent in the last three sessions.

Market trading liquidity fell from Wednesday with more than 223 million shares being traded, worth 5.33 trillion VND (approximately 237 million USD).

Banks, energy producers, rubber companies and agriculture firms were among decliners.

Of the six listed banks on the southern bourse, BIDV (BID), Vietinbank (CTG), Eximbank (EIB) and Sacombank (STB) fell after they had made two-day increases.

The four bank stocks dropped between 0.4 percent and 1.1 percent from their two-day gains of 3.6 percent, 3.1 percent, 13.5 percent and 5.5 percent, respectively.

Shares of rubber companies also ended in negative territory following previous strong gains.

Sao Vang Rubber JSC (SRC) was down 0.6 percent, Da Nang Rubber JSC (DRC) fell 1 percent and the Southern Rubber Industry JSC (CSM) lost 1.1 percent.

SRC had advanced total 1.8 percent and DRC jumped 6.1 percent in the previous two days, while CSM soared 5.8 percent in the previous four days.

Energy producers suffering losses included PetroVietnam Mud Drilling (PVC) and PetroVietnam Drilling and Well Services (PVD), while the two largest agriculture firms – Hoang Anh Gia Lai (HAG) and Hoang Anh Gia Lai Agriculture International (HNG) – also saw their share values fall.

Some speculative stocks in other industries such as property developers Dream House Investment (DRH), Hoang Quan Consulting-Trading-Service Real Estate (HQC) and An Duong Thao Dien JSC (HAR) also declined on profit-taking.

On the positive side, dairy producer Vinamilk (VNM), Vietnam National Petroleum Group (PLX) and Vietcombank (VCB) gained.

BIDV Securities (BSC) said in its daily report that the market gained at a slower rate at the end of the session, compared to the first half, as investors sought short-term profits in stocks that had made gains in previous days.

Investors have switched their focus from speculative stocks to large-cap ones in the VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation, BSC said, adding that the VN Index continue to rise over the next few days.

The HNX Index on the Hanoi Stock Exchange, however, fell 0.29 percent to end at 89.90 points. The northern market index has dropped a total 0.5 percent in two days.-VNA