HA NOI — The stock market stepped into a downward correction yesterday after sustaining last week's gains on Monday, as heavy profit-taking pushed up trading values and volumes dramatically.
"The correction was predictable and technically reasonable," an FPT Securities Co analyst wrote on the company's website. "Many investors decided to lock in profits because their shares had risen a great deal in value."
The slump could turn into a buying opportunity for many investors who believed the overall uptrend would continue, he noted
On the HCM City Stock Exchange yesterday, the value of trades climbed to a 14-month high of over VND1.7 trillion (US$82 million), while volume soared 86 per cent over Monday's session to 121.7 million shares.
Meanwhile, the VN-Index slid from its nearly five-month high on Monday to 422.22 points, a decine of 1.44 per cent. Decliners, led by blue chips, outnumbered advancers by three-to-one, with 10 of the 30 leading shares by capitalisation and liquidity dropped to their floor prices, sending the VN30 Index down by over 1 per cent to 480.89.
A few shares managed to buck the sell-off trend. Sacombank (STB) continued to hit the ceiling, generating a volume of 3.88 million shares, while Eximbank (EIB) – the major player in the hostile takeover rumours swirling around Sacombank – also rose by 0.6 per cent with over 4 million shares changing hands. Another 32.5 million EIB shares, worth up to VND579 billion ($27.6 million), were also traded through negotiation.
It was Military Bank (MBB), however, that locked in the pole position as the most-active share on the HCM City market, with 4.77 million shares traded. MBB rose 4.8 per cent to close at VND14,000 ($0.67) a share.
On the Ha Noi Stock Exchange yesterday, the HNX-Index declined by nearly 3 per cent to conclude the session at nearly 68 points, while heavy profit-taking lifted the value of trades to a record high of over VND1 trillion ($48.6 million). Volume rose by 81 per cent to 135.7 million shares.
Continued speculation surrounding Ha Noi Housing Bank (HBB) made it the most-active share nationwide, with volume reaching 40.3 million shares.
Investors were picking up HBB shares in the hopes that it would post gains similar to STB, which has risen by nearly 60 per cent over the past three months, said independent analyst Pham VIet Hung, who predicted that banking shares would likely continue to rise on speculative buys.
Foreign investors picked up a net of VND143.3 billion ($6.8 million) worth of shares on both exchanges yesterday. — VNS