Monday, April 24 2017

VietNamNews

Market corrects on profit-taking

Update: April, 13/2017 - 01:00
Shares slump on Wednesday after the benchmark VN-Index set new nine-year peak on Tuesday. — Photo laodong.com.vn
Viet Nam News

HÀ NỘI – Shares fell on the two exchanges on Wednesday as investors booked short-term profits after the benchmark index set a nine-year new peak.

On the HCM Stock Exchange, the benchmark VN Index retreated to 725.58 points, down 0.8 per cent. The key index has gained nearly 10 per cent this year.

On the Hà Nội Stock Exchange, the HNX Index also decreased 0.8 per cent to close at 89.91 points. The northern market index has expanded more than 14 per cent since 2016.

Large-cap shares fell under selling pressure when 22 of the 30 largest stocks by market value and liquidity dropped.

Losers include banks, insurers, steel and plastic manufacturers, consumer product companies, oil and gas firms and real estate developers.

Realty shares were hit hard after discrepancies in earnings reports by some real estate companies decreased investor confidence.

Net profits of Tân Tạo Investment Industry Corp (ITA) shrank from VNĐ54 billion (US$2.4 million) to VNĐ39.2 billion in 2016, equivalent to a 28 per cent decrease after auditing.

ITA shares suffered an eighth straight losing session on Wednesday, closing at about VNĐ3,000 a share, a loss of 26.3 per cent.

Hoàng Quân Consulting Trading Service Real Estate Corp (HQC) also posted lower net profit in 2016 after auditing, falling from nearly VNĐ112 billion to just VNĐ19.6 billion. HQC shares sank 5 per cent in the morning trade but bounced back to the reference price of VNĐ2,340 a share.

Negative spillover spread to big property companies such as VinGroup (VIC), Kinh Bắc City Development (KBC), Vĩnh Phúc Infrastructure Development (IDV) and Construction Joint Stock Company No 3 (VC3).

On the other side of the fence, the recovery of Vinamilk (VNM), Vietjet Air (VJC) and software producer FPT Corp (FPT) cushioned the market.

“Q1 earnings have gradually been reflected in stock prices and the market may see a temporary information gap,” analysts at FPT Securities Co wrote in a report.

They urged attention to movements of financial stocks as this group often reflected market trends.

Liquidity rose slightly from Tuesday’s figures with nearly 304 million shares worth a combined VNĐ4.9 trillion (roughly $215 million) traded in the two markets. – VNS

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