VN-Index falls to 720 on bank losses hinh anh 1Illustrative photo (Source: VNA)
Hanoi (VNA) - The benchmark VN-Index retreated to 720 points on May 5 which represented a decline of 0.28 percent as bank and agribusiness shares lost steam.

Five of six listed banks on the HCM Stock Exchange lost value, including banks that rose in the previous sessions like BIDV (BID), Vietinbank (CTG), Vietcombank (VCB), Sacombank (STB) and Eximbank (EIB) with decreases of 0.3-2.5 percent.

Only Military Bank (MBB) bucked the trend with gains of 1.2 percent.

Agribusiness like Hoang Anh Gia Lai Co (HAG) and Hoang Anh Gia Lai Agricultural Investment (HNG) and food producers like Masan Group (MSN), Vinamilk (VNM) and Kido Group (KDC) also fell.

“Negative trading today was mainly driven by profit-taking selling pressure on large-cap stocks which have gained substantially in the previous sessions such as Vinamilk and banks,” analysts at BIDV Securities Joint Stock Company (BSC) wrote in a note.

The VN-Index bouncing back to 720 points after the gauge dropped below this level in mid-session showed investors’ confidence in this level, BSC’s analysts said.

On the bright side, PetroVietnam Drilling and Wells Service (PVD) recovered following four consecutive losing sessions, rising by the maximum of 7 percent in a single session on HCM City’s bourse to 16,450 VND (0.72 USD) a share.

Hoa Sen Group (HSG) was another big gainer among the top 30 shares by market value and liquidity, up 2.2 percent to 49,650 VND a share, after the steelmaking company announced a dividend rate of 50 percent and bonus shares of 20 percent.

On the Hanoi Stock Exchange, the HNX-Index was up 0.21 percent to end at 89.71 points. The northern gauge decreased 0.33 percent on May 4.

According to BSC’s analysts, cash flows seemed to withdraw from large-cap stocks and channel into medium- and small-cap stocks.

Most of the 10 most active stocks on the two exchanges on May 5 had prices below 10,000 VND a share.

Liquidity declined substantially in the two markets with a total of nearly 243 million shares worth a combined 4.3 trillion VND (189.4 million USD) traded, down 9.3 percent in volume and 17.3 percent in value compared to the May 4 figures.

Foreign investors were mixed on May 5. They were net sellers in HCM City’s market for nearly 33 billion VND but remained net buyers on the Hanoi’s exchange with a net value of nearly 3 billion VND.-VNA