VN-Index retreats from 10-year high hinh anh 1Investors at Sacombank Securities Company in HCM City. (Source: VNA)
Hanoi (VNA) - Shares retreated on March 28 on the two national stock exchanges as investors booked short-term profits on fears of a possible downward correction.

On the HCM Stock Exchange, the VN-Index decreased for the first time in the last four sessions, down 0.6 percent to close at 719.3 points.

Meanwhile, the HNX-Index on the smaller Hanoi Stock Exchange edged down 0.9 percent to end at 90.5 points.

The market breadth was negative with 257 stocks falling, 191 rising and 252 remaining unchanged on the two exchanges.

Thirteen of twenty stock groups slumped, led by banks and food-beverage with average losses of 1.4 percent and 1.3 percent, respectively.

Seven of nine listed banks were on the defensive, with drops of 0.7-4.9 percent each, including Vietcombank (VCB), Vietinbank (CTG), BIDV (BID) and Asia Commercial Bank (ACB).

The biggest listings in the food and beverage category like dairy giant Vinamilk (VNM), brewery Sabeco (SAB) and food producer Masan Group (MSN) all lost growing momentum and fell by between 0.5 percent and 3.8 percent.

According to analysts at BIDV Securities Company (BSC), investors tried to seize short profits on banks and consumer goods companies which had climbed substantially after the VN-Index reached a fresh ten-year high of over 720 points on March 24.

Liquidity dropped with 267.2 million shares worth a combined 4.3 trillion VND (188.6 million USD) recorded in the two markets, down 8.7 percent in volume and 12.2 percent in value from March 27’s levels.

“We anticipate the market will continue to test the new support level at 720 points,” BSC’s analysts wrote in market report on March 28.   

On the positive side, insurers and construction companies advanced and cushioned the market.

PVI Holdings (PVI) jumped 7.9 percent to 27,200 VND a share after the insurer announced a 20-per-cent dividend rate and a plan of easing foreign ownership to 100 percent. Other insurers such as Bao Viet (BVH), Bao Minh (BMI) and Vietnam National Reinsurance (VNR) also increased slightly.

Money also flew into construction stocks with sound financial indicators such as FLC (FLC), FLC Faros Construction (ROS), HCM Infrastructure Investment (CII), Hoa Sen Group (HSG) and Dat Xanh Real Estate Service & Construction.

Foreign investors concluded trade as net buyers in the two markets with total net value of nearly 80 billion VND.-VNA