VN-Index retreats from 2008 peak

Petrolimex’s shares slipped over 2 percent on ​July7 due to heavy profit-taking pressure (Photo: VNA)

On the Hanoi Stock Exchange, the HNX-Index was down 1 percent to end at 101.58 points.

Liquidity rose substantially with a total of 357 million shares worth almost 5.8 trillion VND (255.5 million USD) traded on the two markets, up 4.7 percent in volume and 18.4 percent in value compared with the previous session.

Only five of the top 30 largest shares by market capitalisation and liquidity on the main bourse in HCM City advanced and 24 declined, including banks, securities firms, energy companies and real estate developers.

Seven of nine listed banks on the two exchanges lost value, of which the two biggest listed lenders – Vietcombank (VCB) and BIDV (BID) – both slipped 1.7 percent.

Industry-leading companies like Petrolimex (PLX), Vinamilk (VNM), VinGroup (VIC), steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG), DHG Pharmaceutical (DHG) and PetroVietnam Drilling and Wells Service (PVD) slumped between 0.9-2.2 percent each.

The market has rallied substantially recently and a correction is understandable.

The VN-Index has gained 17 percent since earlier this year and is among the best performers in the world, even surpassing neighbouring markets like Thailand, the Philippines and Indonesia which have also reacted strongly to foreign capital.

In Vietnam, foreign investors has poured a net 9.2 trillion VND (roughly 409 million USD) in the first half of this year, beating the record 8 trillion VND recorded in the first seven months of 2008, Viet Dragon Securities Co’s data showed.

Foreign traders were net sellers on the day on the HCM Stock Exchange after an 18-day net buying streak, offloading shares worth 61.5 billion VND. They were also responsible for net sell value of 12 billion VND on the Hanoi bourse.-VNA