|Investors watch trades in the Ha Noi-based An Binh Securities Co's trading floor. Both stock indices tumbled yesterday on strong profit taking. — VNS Photo Viet Thanh
HA NOI (VNS) — Increased selling drove down stock indices on both exchanges yesterday as investors continued to unload shares to earn margin profits.
"The buying force was not strong enough to hold gains until closing time. Investors sold both blue chips and hot stocks for profit as they advanced strongly in the post rally run," analysts at FPT Securities Co wrote on the company's website.
The market measurements rose to the positive zone before returning to negative territory.
On the HCM Stock Exchange, the VN-Index gave up another 0.26 per cent to close yesterday's session at 578.87 points while the VN30, which tracks the top 30 shares by market value and liquidity, declined 0.44 per cent to end at 598.25 points.
Speculative stocks, including FLC Group (FLC), Ocean Group (OGC) and Hong Quan Consulting Trading Service Real Estate (HQC) and HAI Agrochem (HAI), remained the most heavily-traded.
FLC topped the market with almost 20 million shares traded, but its price dropped 1.1 per cent to finish at VND9,000 a share. HAI tumbled 2.1 per cent while HQC and OGC climbed 3.9 per cent and 1.7 per cent, respectively.
Overall liquidity declined with both market volume and value down 20 per cent from Tuesday's levels, totalling 131.4 million shares worth almost VND2 trillion (US$91.7 million) by the end of the session.
According to analysts at Investment Vietnam Securities Co, a slump of hot stocks and leading shares had a negative impact on investor psychology and increased downward pressure on the market.
"We think pressure is noticeable, but it's not certain that all stocks would decline steeply. Profit-taking psychology was obvious, but investors also knew the correction was mainly driven by impacts of large-cap shares," analysts wrote in a note.
They said if the market maintained stable demand, cash flows would soon return to the market.
On the Ha Noi Stock Exchange, the HNX-Index also lost 1.04 per cent to conclude at 86.49 points as the decliners doubled the advancers.
Trades decreased here also as the trading volume and value both fell 20 per cent from the previous session, reaching 64.4 million shares worth VND799 billion ($36.7 million).
FIT Investment Co (FIT) continued to be the most active stock with 6.7 million shares, but the price plunged steeply 8.6 per cent to settle at VND13,800 ($0.63) a share.
By contrast, the foreign sectors extended their net buys by another VND103 billion ($6 million) worth of shares yesterday on both markets. — VNS