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VN stocks retreat on profit-taking

Update: November, 25/2016 - 09:45
Shares fell yesterday to end a three-day rally as investors tried to lock in profits and choppy crude prices resulted in a negative move for the energy sector. — Photo thoibaonganhang.vn

HÀ NỘI — Shares fell yesterday to end a three-day rally as investors tried to lock in profits and choppy crude prices resulted in a negative move for the energy sector.

The benchmark VN Index on the HCM Stock Exchange dropped 0.7 per cent to close at 678.18 points, putting a dent in its three-day increase of 1.5 per cent.

The HNX Index on the Hà Nội Stock Exchange edged down 0.3 per cent to finish at 81.18 points. The northern market index had gained 1 per cent in the previous three sessions.

Blue chips were the major force that pushed the stock market down, with seven of the 10 largest companies by market capitalisation ending in the negative territory.

Those included Vietcombank (VCB), Bank for Investment and Development of Việt Nam (BID), Vietinbank (CTG), Faros Construction Corp (ROS) and dairy producer Vinamilk (VNM).

VCB was down 0.8 per cent after rising a total 2.1 per cent in the previous three trading days, BID slid 0.6 per cent after gaining 5.2 per cent in the same period, and CTG slashed 2.1 per cent from its gain of 3.1 per cent.

VNM fell 1.7 per cent to extend its loss to 2.8 per cent after two sessions, and ROS slumped 6.6 per cent – the worst fall since it was listed on the southern bourse in September 1. Faros’ share price soared more than nine times the starting price on September 1 to VNĐ118,000 yesterday.

The energy sector was mixed with most of the oil and gas stocks ending lower than Wednesday’s closing levels in response to choppy global crude prices uncertain whether the Organisation of Petroleum Exporting Countries could agree on an output cut at its November 30 meeting.

US crude West Texas Intermediate (WTI) and Brent crude added 0.2 per cent each to trade at around US$48-49 a barrel.

Market trading liquidity was almost flat compared to Wednesday. Nearly 160 million shares were exchanged worth VNĐ2.78 trillion ($123.7 million).

VNĐ/USD reaches record high

The State Bank of Việt Nam yesterday set its daily reference mid-point rate for local banks’ forex trading at VNĐ22,131 – the highest level since the reference rate was first used on January 4.

With the allowable trading margin for the dollar at 3 per cent on either side of the reference rate, commercial banks and unofficial market traders revised upwards their selling prices of the US dollar against Vietnamese đồng.

Banks set their selling prices at VNĐ22,790 for a dollar and unofficial-market traders traded VNĐ22,950 for a dollar.

The increases in both official and unofficial forex trading rates were caused by market expectations that the US central bank may increase its lending rates in December.

Vietcombank yesterday also increased the rate by 100 đồng as against Wednesday, listing the rate at VNĐ22,690 and VNĐ22,790 for selling and buying, respectively. BIDV and VietinBank also listed the same rate.

ACB raised the US dollar price by 70 đồng against the previous day, both for buying and selling, to trade at VNĐ22,670 and VNĐ22,790 per dollar, respectively.

The US dollar prices were also increased at Techcombank to VNĐ22,650 and VNĐ22,790 for buying and selling respectively. With a rise of 70 đồng for buying and selling against the previous day, Sacombank traded the dollar at the rate of VNĐ22,680 and VNĐ22,790 respectively.

With the increase, the selling rate of the US dollar at commercial banks was 5 đồng lower from the ceiling level allowed by the State Bank of Việt Nam – the shortest level so far this year.

At the Quốc Trinh Jewellery Company on Hà Trung Street, the most popular forex trading point in the unofficial market in Hà Nội, the dollar was bought for VNĐ22,870 and sold for VNĐ22,950.

In the global market, the US dollar reached the highest level over the past 14 years yesterday thank to the better economic indications for the US and decreasing value of the Chinese yuan.

In the global market, the US dollar Index, which tracks the greenback’s performance against 16 other currencies, climbed 0.6 per cent to 91.87, its strongest level since December 2002, according to the Wall Street Journal Dollar Index. — VNS

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