Thursday, March 22 2018


VN-Index retreats from 10-year high

Update: March, 29/2017 - 09:00
The VN-Index unexpectedly retreated from a ten-year high of 722 points on rising profit-taking efforts. — Photo
Viet Nam News

HÀ NỘI – Shares retreated yesterday on the two national stock exchanges as investors booked short-term profits on fears of a possible downward correction.

On the HCM Stock Exchange, the VN-Index decreased for the first time in the last four sessions, down 0.6 per cent to close at 719.3 points.

Meanwhile, the HNX-Index on the smaller Hà Nội Stock Exchange edged down 0.9 per cent to end at 90.5 points.

The market breadth was negative with 257 stocks falling, 191 rising and 252 remaining unchanged on the two exchanges.

Thirteen of twenty stock groups slumped, led by banks and food-beverage with average losses of 1.4 per cent and 1.3 per cent, respectively.

Seven of nine listed banks were on the defensive, with drops of 0.7-4.9 per cent each, including Vietcombank (VCB), Vietinbank (CTG), BIDV (BID) and Asia Commercial Bank (ACB).

The biggest listings in the food and beverage category like dairy giant Vinamilk (VNM), brewery Sabeco (SAB) and food producer Masan Group (MSN) all lost growing momentum and fell by between 0.5 per cent and 3.8 per cent.

According to analysts at BIDV Securities Company (BSC), investors tried to seize short profits on banks and consumer goods companies which had climbed substantially after the VN-Index reached a fresh ten-year high of over 720 points last Friday.

Liquidity dropped with 267.2 million shares worth a combined VNĐ4.3 trillion (US$188.6 million) recorded in the two markets, down 8.7 per cent in volume and 12.2 per cent in value from Monday’s levels.

“We anticipate the market will continue to test the new support level at 720 points,” BSC’s analysts wrote in market report yesterday.   

On the positive side, insurers and construction companies advanced and cushioned the market.

PVI Holdings (PVI) jumped 7.9 per cent to VNĐ27,200 a share after the insurer announced a 20-per-cent dividend rate and a plan of easing foreign ownership to 100 per cent. Other insurers such as Bảo Việt (BVH), Bảo Minh (BMI) and Vietnam National Reinsurance (VNR) also increased slightly.

Money also flew into construction stocks with sound financial indicators such as FLC (FLC), FLC Faros Construction (ROS), HCM Infrastructure Investment (CII), Hoa Sen Group (HSG) and Đất Xanh Real Estate Service & Construction.

Foreign investors concluded trade as net buyers in the two markets with total net value of nearly VNĐ80 billion. – VNS


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