HA NOI (VNS)- The interest rate cut announced yesterday failed to extend the market's modest increase today with both stock indices retreating this morning.
The benchmark VN-Index on the HCM City Stock Exchange lost 0.14 per cent to stand at 492.90 points by the end of the morning, even though it opened at over 496 points.
Trading was sluggish with just 27 million shares traded, worth VND496 billion (US$23.6 million).
Analysts said investors already knew the interest rate cut was coming and the landmark 497-500 points showed strong resistance in the short term.
Blue chip performances were mixed with dairy giant Vinamilk (VNM), Sacombank (STB) and food processor Masan Group (MSN) falling, while property developer Hoang Anh Gia Lai (HAG), steelmaker Hoa Phat Group (HPG) and Vietinbank (STG) rose slightly.
The VN30, tracking the 30 largest shares, was down 0.01 per cent at 561.74 points.
With no positive information, Lao Cai Mineral Exploitation & Processing (LCM) surprised as the most active code this morning with trades of 1.57 million shares, rising 4.35 per cent to be traded at VND14,400 ($0.69) a share.
On the Ha Noi Stock Exchange, the HNX-Index closed off 0.08 per cent at 61.07 points with a turnover of VND122 billion ($5.8 million).
Real estate company Sacomreal (SCR) is temporarily leading the market with more than 2 million shares changing hands, closing flat at VND8,400 a share.
Trading will resume at 1pm. - VNS